The cost of living fell by 0.5% last month, according to the latest figures from the Central Statistics Office (CSO).
They revealed today that the consumer price index had fallen for the second month running following a 0.3% drop in December. However, the cost of living remained 2.2% higher this January than it had been in the same month of 2011.
The main drop came in the price of clothing and footwear, which fell by 10.7% last month. Household furniture also fell by 2.5% while housing and the cost of utilities dropped by 1.6%.
There was a rise of 3.5% in the cost of alcohol and tobacco, while transport costs also rose by 1.2%.
Education has risen by 8.9% in the year while the cost of utilities and housing was also up by 6.7% in the last 12 months.