Inflation falls to 2.7% led by energy and food price drops

Euro-wide inflation figures will be released tomorrow and will be keenly watched for indications in relation to interest rate cuts

The CSO said food prices are estimated to have decreased by 0.2% in the last month and increased by 4.3% in the last 12 months.

Inflation dipped back below 3% in January with prices rising by an average of 2.7% over the past 12 months according to the CSO's Harmonised Index of Consumer Prices.

This compares with a 3.2% rate for December. Energy prices are estimated to have decreased by 0.8% in the month and decreased by 7% over the 12 months to January.