The January sales period delivered only modest growth in retail sales despite retailers claims to have reduced their prices, new figures suggest.

The figures also indicate that bar sales volumes continued to fall in January in marked contrast to a 5.3 per cent rise in the volume of sales in all sectors of the economy in the same period.

Ibec affiliate Retail Ireland said the retail figures were disappointing. It said price increases for electricity, gas and waste disposal were a matter of concern because sales volumes increased by only 2.8 per cent in the year to the end of January when motor sales were excluded.

The volume of bar sales fell 6.1 per cent in the year to the end of January, continuing a trend that began in 2003.

Goodbody economist Dermot O'Leary said the downward trend appeared to have continued from where it left off in 2004 when sales volumes fell 4. 5 per cent for the year and noted that volumes fell by a similar amount in 2003.

Mr O'Leary blamed excessive inflationary pressure in the last number of years for the fall-off in bar sales.

"While publicans will claim that this was mainly due to the ban on smoking in the workplace, the fact remains that bar sales volumes were on a downward path long before this time."

The Central Statistics Office figures said the value of retail sales rose 6.3 per cent in January compared with January 2004 and rose 1.9 per cent in the month.

When motor trades were excluded, the annual increase was 3.2 per cent and January sales were down by 0.2 per cent compared with the previous month.

Department stores had the biggest increase in the volume of sales in the October-December period last year, rising by 3.7 per cent compared with the July-September period.

The biggest decrease between the same periods was a 6.3 per cent fall in electrical goods sales.