The annual rate of inflation as measured by the consumer price index fell to 2.3 per cent, down from 2.6 per cent in December.
The EU Harmonised Index of Consumer Prices (HICP) also fell from 2.4 per cent in December to 2.1 per cent in January.
The most notable changes in the year were increases in housing, water and (+9.2per cent), health (+6.2per cent) and education (+5.6per cent).
The largest decreases over the last 12 months were seen in clothing and footwear (-3.4per cent) and furnishings (-2 per cent), due to the effect of the January sales.
The annual rate of inflation for goods was 0.3 per cent in January while the corresponding rate for services was 4.1 per cent.
The cost of transport fell in January due to falls in the price of petrol, diesel and air fares, partially offset by increasing toll charges and rail fares.
Miscellaneous goods and services fell due to falling prices across a range of items including house insurance, motor insurance, other personal effects and hair products.