Ireland's inflation rate flat at 0%

Ireland has a flat rate of inflation, the latest European figures show.

The annual inflation rate for August sat at 0.0%, according to today's Eurostat figures - down from 2.6% in August 2012.

Ireland's average rate over the 12 months was just 1.1%.

Peter Power, of the EU office in Dublin, said Ireland's low inflation figure is good news for mortgage holders.

"Well we see that the Irish have managed very well to keep inflation low - in fact it's at a lower rate than many of our neighbours - and ultimately it is very good news for consumers and people's spending power."

"It's also very important for taking pressure off the ECB to increase lending rates, the importance of which is self-evident to anyone with a mortgage."

Overall, inflation rates fell across Europe, from an average of 2.7% last August to 1.5%.

Estonia recorded the highest inflation figure in the Euro area during the last 12 months with a rate of 3.8%, while Greece was at the other end of the scale at -1%.