The European Central Bank reiterated its readiness to intervene again to bolster the struggling euro zone economy as a new figures pointed to a decline in the Irish consumer prices last month.

One day after US treasury secretary Jack Lew called on European leaders to do more to avoid a "lost decade" of low growth, the ECB said it remained ready step up stimulus efforts if inflation in the single currency area stayed too low for too long.

A statement in the ECB's monthly bulletin on its willingness to act followed yet another warning from the influential Bundesbank chief Jens Weidmann against against moves to buy government bonds. Saying such action would create the wrong incentives for member states, Mr Weidmann cautioned against created indebtedness in this way.

His remarks on Wednesday came as Mr Lew said it was “critical” for Germany and Netherlands open their purse strings. “Resolute action by national authorities and other European bodies is needed to reduce the risk that the region could fall into a deeper slump,” he said.

Mr Lew’s blunt intervention was seen as implicit plea for action from the ECB, which has been under pressure for months to avert the growing threat of deflation in the euro zone .

“Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate,” the bank said yesterday.

In spite such public statements, Mr Weidmann’s position illustrates the limitions on the bank.

The latest Irish consumer index showed that prices fell by 0.3 per cent in the month in October, giving a headline annual inflation rate of 0.2 per cent.

Education costs rose 4.7 per cent in the month of October while miscellaneous goods and services were up nearly 1 per cent.

The sectors with the largest monthly decreases were transport (-2.2 per cent), clothing and footwear (-1.3 per cent), and furnishings and household maintenance (-0.8 per cent).

The most notable changes in the year were increases in education (+4.8 per cent), alcoholic beverages & tobacco (+3.9 per cent), miscellaneous goods and services (+3.5 per cent).

There were decreases in clothing and footwear (-4.9 per cent) and food and non-alcoholic beverages (-2.7 per cent).

The Central Statistics Office cited higher prices for alcohol sold in off licences and supermarkets and higher tobacco prices while prices for food and non-alcoholic beverages decreased due to lower prices for products such as meat, vegetables and bread and cereals.

“Transport fell mainly due to lower petrol and diesel prices and a reduction in the price of motor cars. Clothing & Footwear decreased due to sales,” it said.

Merrion economist Alan McQuaid said domestic inflationary pressures in Ireland are likely to remain fairly well contained for some time to come, despite the booming economy.

“However, we do expect an uptick in the coming months, with a strengthening labour market likely prompting a gradual rise in wages, and the weakening euro set to push up import prices”

Euro zone inflation currently stands at just 0.4 per cent, well below the ECB’s target of below but close to 2 per cent.