The annual rate of inflation as measured by the Retail Price Index in August stood at -0.03 per cent, the National Statistics Office said.
It said a year earlier the annual rate was 1.5 per cent.
The largest downward impacts on annual inflation were brought about by the water, electricity, gas and fuels index and the transport and communication index.
This was mainly due to lower electricity rates and airfares respectively.
The main upward impacts were recorded in the recreation and culture index, the beverages and tobacco index and the household equipment and house maintenance costs index, mainly due to higher private tuition fees, prices of cigarettes and household appliances.
The 12-month moving average rate was 0.35 per cent.