DUBLIN: Ireland's annualised inflation rate accelerated to 0.2 percent last month, but still remained close to deflationary levels and below the eurozone average, official data showed on Thursday.
"Prices on average, as measured by the CPI (consumer price index), were 0.2 percent higher in March compared with March 2013," the Central Statistics Office (CSO) said in a statement.
The rate had dropped to minus 0.1 percent in February, sparking fears of a damaging period of deflation, or falling prices.
Deflation encourages the belief that prices will fall further, prompting consumers to delay purchases, thereby dampening activity and employment demand.
Last week, the European Central Bank held steady on its interest rates, even though inflation in the euro area slowed sharply in March. Central banks tend to raise rates to curb high inflation and cut them when prices are rising slowly or falling.
According to the latest data compiled by the EU statistics agency Eurostat, area-wide inflation stood at just 0.5 percent in March, down from 0.8 percent in February and way below the ECB's target of close to, but below 2.0 percent.
Ireland requires significant growth to rebuild its economy following the eurozone nation's exit from an international bailout in December.
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