Inflation figures show retailers 'are offering great value'

Retail Ireland has said that the new inflation figures shows that retailers are keeping prices low and consumers continue to avail of great value.

The figures show falls in the price of food and non-alcoholic beverages, clothing and footwear and furnishings and household items during the January sales period.

Retail Ireland Director Stephen Lynam, said: "Today's figures show an overall fall in goods prices of 0.8% in January. When prices are compared with the same month last year, goods price inflation is very low at 0.7%.

"The bulk of price inflation in the Irish economy is coming from services.

"Retailers have cut prices and are offering great value on a range of items. These price cuts have eaten into retailers' margins as the cost of doing business has not fallen to match the very difficult trading environment.

"Since 2008 retail sales have declined by 30% and over 50,000 jobs have been lost in the sector."

Mr Lynam said the Govt faces a challenge to restore consumer confidence and drive domestic demand.

He said: "While the retail-specific measures in the Action Plan for Jobs are undoubtedly welcome, much more needs to be done.

"Costs remain very high when compared to our competitors. We need to see tangible reforms that will bring down local authority charges, utility costs and rents. Until that happens, job creation will be hampered."