The annual rate of inflation remained at 1.2 per cent in January, unchanged from December’s reading.

Figures from the Central Statistics Office show the consumer price index, fell 0.5 per cent in the month, in line with the monthly decrease in January 2012.

The most notable changes in the year came in education with an increase of 4.7 per cent and alcohol and tobacco prices increased 4.5 per cent.

Communications fell 5.7 per cent and furnishings and household equipment fell 3.3 per cent, compared to January 2012.

However transport contributed 0.46 per cent to the overall increase in annual CPI as airfares, motor tax, petrol and diesel prices increased during the year.

Clothing and footwear saw the biggest decrease down 11.1 per cent on the month, due to traditional winter sales. Health also rose as the cost of prescribed drugs rose 1.1 per cent in January.

Prices in the miscellaneous goods  services category also decreased 1 per cent as lower motor insurance premiums helped push down the average price down in the sector.