This marks the lowest inflation rate since March 2021, when inflation began rising, and is significantly below the eurozone average of 2.2 percent last month.

Prices, as measured by the Harmonised Index of Consumer Prices (HICP), dropped 0.8 percent month-on-month, with energy prices falling by 1.4 percent in September and 14.1 percent over the past year.

Ireland had the joint third-lowest inflation rate in the Eurozone last month, after inflation peaked at nearly 10 percent two years ago.

Excluding energy and unprocessed food, the core HICP rose by 1.8 percent year-on-year in September, according to the Central Statistics Office.

This sharp decline in inflation comes just a day before the government is set to unveil another large package of cost-of-living financial support, along with planned permanent spending increases of 6.9 percent and tax cuts in the 2025 budget.

In separate data, provisional retail sales fell 1.5 percent month-on-month in August, leaving them 2.5 percent lower than a year ago.