IRELAND'S annual inflation rate is the third lowest in the European Union, according the latest official figures.

At 1.4 per cent in August, the Irish rate shared third position with Germany and Luxembourg. The Irish rate was well below the EU average of 2.3 per cent.

Ireland's position improved from 2.5 per cent and ninth place in the table of EU members for August 1995. The EU average rate of 2.3 per cent is a record low since Eurostat began compiling figures in 1983. It compares with an EU rate of 3.1 per cent in August 1995.

Sweden had the lowest inflation rate at 0.3 per cent, down from 2.7 per cent. Nine EU member states had rates below 2 per cent while 10 were below the EU average. Greece continued to record the highest rate at 8.5 per cent, down marginally from 8.7 per cent a year earlier.