The Republic continued to top the euro-zone's inflation league last month, according to figures released yesterday by the European Commission's statistics office, Eurostat.

The figures show that the Republic has the highest rate of price increases in the euro-zone countries, and throughout the European Union as a whole, in June, with annual inflation running at 3.8 per cent.

However, the Republic recorded its third fall in inflation in three months, with the rate dropping from 4.6 per cent in April and 3.9 per cent in May.

Germany was once again at the bottom of the table with inflation in Europe's largest economy standing at 0.9 per cent.

The figures show that average euro-zone inflation was 2 per cent in June. This was a 0.1 per cent rise on both June 2002 and last May.

The increase brought inflation to the limit of the European Central Bank's tolerance threshold.

Inflation in all 15 EU countries, which includes three outside the euro zone - Denmark, Sweden and the UK - was slightly lower at 1.8 per cent, 0.1 per cent higher than in June 2002.

Britain recorded the lowest rate with 1.1 per cent, while the two Scandinavian countries had 2 per cent each.

The Republic also had the highest 12-month average for the year to June 2003, with 4.5 per cent.

Germany had the lowest with 1.1 per cent.