Inflation fell from its six-year high last month despite sharp increases in the price of clothes, shoes and furniture last month as the impact of the January sales unwound.
The annual rate of inflation in February was 4.8 per cent compared to 5.2 per cent in January, according to the Central Statistics Office.
The biggest contributor to inflation remains housing costs, including mortgage repayments, which are up 22.5 per cent since February last year. This reflects increases in interest rates.
The price of services, as against physical goods, rose by 9.1 per cent over the 12 months.
Analysts predict that inflation has now peaked, and will continue to fall throughout the year as pressure for higher interest rates in Europe subsides.
"We expect the annual rate of inflation to tick lower as the year progresses," Dermot O'Leary, of Goodbody stockbrokers, said yesterday.
"Our current forecast looks for an average rate of 3.8 per cent for the full year."
Pat McArdle, chief economist with Ulster Bank, noted that the price of items once covered by the Groceries Order continued to fall significantly.
"Groceries Order items again displayed lower prices - the annual rate of decline in these prices, 0.7 per cent, is the largest since the CSO series began in 2003."
The Groceries Order banned retailers from passing on discounts obtained from suppliers to customers.
AA spokesman Conor Faughnan said that, despite the slight fall in energy prices overall, some motorists were experiencing unjustified increases in the price they pay for petrol.
"We advise motorists to take notice of fuel prices as they drive around and only give their business where they are getting value."
Business groups warned that the easing in inflation was no cause for complacency.
"The multinationals that are now leaving the State are at pains to stress that their departure in no way relates to the productivity performance of the workers in Ireland. Of course not, the difficulty is in the increasing cost base," business group ISME chief executive Mark Fielding said yesterday.
The Harmonised Index of Consumer Prices - a different measure of inflation excluding interest rate effects - also showed inflation slowing to 2.6 per cent from 2.9 per cent in January.
