The latest data from the Central Bank shows the average interest rate in January was up slightly on December's rate of 4.19 per cent

It is only the third time since September 2021 that inflation has been below 5 per cent

The relief is based on the increase in mortgage interest paid in 2023 over interest paid in 2022

Micheál Martin accused Sinn Féin of adopting a ‘knee-jerk’ approach to cost-of-living measures.

Investors are weighing up the impact of the collapse on the outlook of European Central Bank policy. The ECB's expected interest rate hikes later this week are now likely to meet stronger opposition.

Malta had the lowest rate in the Euro zone at just 1.98 per cent

The move comes after the European Central Bank increased interest rates earlier this year in an attempt to tackle inflation