The official rate of inflation eased to 8.2% for the twelve months to December.
That's down from 8.9% for the year to November, according to figures from the Central Statistics Office.
Prices fell in the month of December by 0.2%.
Despite the easing inflation rate, prices will still keep rising.
The main reason for the decline was a reduction in energy-related costs like fuels.
Economist Jim Power says that is likely to continue this month:
"For example, petrol prices fell by 12% during the month of December, and diesel prices were down by 14.2%.
"So there is a huge element of energy-related downward pressure on prices, and that's reflecting what's happening on global energy markets, and that is continuing into January."