THE COST OF LIVING in Ireland fell by 0.4 per cent in November – the biggest monthly fall for three-and-a-half years.

Figures published this morning said the Consumer Price Index – calculated based on the shopping needs and spending habits of the everyday consumer – fell by 0.4 per cent in November.

The monthly fall marks the third fall in a row, and the fifth in six months.

On an annual basis, the rate of inflation is at 0.8 per cent – its lowest since November 2010.

A breakdown of prices showed that transport and communications costs led the monthly decline, with transport costs down by 1.9 per cent over the month – largely attributable to the moderate fall in petrol prices – while communications costs were down by 1 per cent.

The cost of services in restaurants and hotels fell by 0.7 per cent, while the cost of alcohol and tobacco products fell by 0.5 per cent.

The largest factor contributing to inflation was mortgage interest, for which costs were up by 0.9 per cent in November – though down by 17.1 per cent in 12 months.

Separate European figures published this morning showed the Irish population as having one of the highest purchasing power levels in the EU – behind only Luxembourg and the Netherlands.

The Eurostat figures are adjusted to allow for the varying costs of living in each country.