The annual rate of inflation fell to 2.1 per cent in June down from 2.4 per cent in May, according to the latest figures from the Central Statistics Office (CSO).
Consumer Prices in June, as measured by the CPI, increased by 0.3% compared to an increase of 0.6% in June of last year.
The figures show that in the year to June the price of goods fell by 0.2 per cent, while the annual rate of inflation for services was 4.3 per cent.
The CSO said the most significant monthly changes were in restaurants and hotels where prices rose by 1.1 per cent. The price of housing, electricity, gas and other fuels rose by 0.7 per cent while alcoholic beverages 0.5 per cent.
The increases were partly offset by a decrease in the price of clothing and footwear which fell 1.4 per cent.
The CSO said the main factors contributing to the changes were the higher price of beer consumed on licensed premises and eating out and increased accommodation costs.
The higher price of housing, electricity and gas was due to higher average mortgage interest repayments, local authority rents and home heating oil.
The EU Harmonised Index of Consumer Prices (HICP) also increased by 0.3 per cent in the month, compared to an increase of 0.5 per cent in June 2004.
The annual rate of inflation as measured by the HICP fell from 2.2 per cent in May to 1.9 per cent in June.