Irish retail sales grew at their fastest rate for more than a year in January in value terms, official figures showed today.
Retail sales rose 1.4 per cent on the month to give an annual rate of 8.8 per cent - their best performance since December 2001.
But economists warned the latest figures were distorted by special one-off factors, including a surge in motor car sales that has since tailed off.
Sales were also distorted by a sharp slowdown in the same month a year ago caused by heavy spending in advance of the changeover to euro notes and coins.
"The numbers appear stronger than they are in reality," said Mr Austin Hughes, chief economist IIB Bank. "The driving force is the increase in motor registrations, which has since given way to a weak number in February," he added.
In December, retail sales rose 2.8 per cent on the month and were 2.8 per cent higher than a year earlier. If motor vehicles are excluded, the monthly rise was 0.8 per cent and the annual increase 6.4 per cent.
The volume of retail sales - excluding price effects - increased by 1.9 per cent in January to give a year-on-year increase of 4.7 per cent.
On a three-month basis, which strips out monthly distortions, the volume figures show a 0.4 per cent increase in January compared with the three months to October.