The annual rate of inflation as measured by the Consumer Price Index fell to 4.3 per cent in April compared top 4.9 per cent in March, the Central Statistics Office said today.
Lower oil prices, a stronger euro and a general decline in business activity helped dampen inflation in April. Economists predict inflation will decline throughout 2003 as the euro zone economy remains sluggish.
Economists said the slide as a welcome sign but noted the rate, about double the euro zone average, is still worrying. "What this is telling us is that the world is in a very weak place," said Mr Austin Hughes, chief economist for IIB Bank.
"Energy prices are coming down as world commodities are easing, interest rates are coming down and they remain significant issues.
"Irish inflation is still relatively high and although we expect the cost of living to become a lot easier, the cost of [domestic] production isn't easing at the same rate".
The European Union harmonised index of consumer prices (HICP) for Ireland, used for intra-EU comparison, was up 0.5 per cent on the month, compared with 0.7 per cent for March.