Retail sales volumes rose by 2.2% in June compared with May, the latest Central Statistics Office figures show.
On an annual basis, however, the volume of retail sales was down 9.9%, though this was the smallest drop so far this year. Economists said lower prices were helping to boost sales.
The CSO says that if sales of cars are excluded, retail sales decreased at an annual rate of 5.5% in June while there was a monthly increase of 2%.
In the month, there were strong rises in sales of pharmaceutical, medical and cosmetics - up 12.1% - while hardware, paints and glass sales rose 7.8%. Bar sales fell 3.4% in the month., however, and furniture sales were down 4.3%.
The CSO says that most sectors of the retail industry showed annual declines, with the biggest seen in the motor trade, where sales were down 30.3%. Bar sales have slumped 12.7% year-on-year, while sales of household equipment are down 16.1%.
The figures also reveal that sales at non-specialised stores, a category which includes supermarkets, fell by 5.2% while clothing, footwear and textiles sales are down 4.2% over a year.
The only sectors showing year-on-year sales increases were pharmaceuticals, medical and cosmetic articles, which rose by 10.2% and fuel, up 1%.
For the second quarter of the year, the volume of retail sales was 13.9% lower compared with a year earlier.
The value of retail sales, which takes prices into account, rose by 1.2% in June, but fell 15.1% over 12 months.
IBEC economist David Croughan said there was 'clear evidence' that falling prices were boosting shoppers' purchasing power. Goodbody's Dermot O'Leary said there was no evidence of a further 'spending strike' by consumers in the aftermath of the April Budget, where personal income tax rates were increased. Ulster Bank's Lynsey Clemenger also suggested that price discounting had had a positive effect on sales volumes.
