New figures from the Central Statistics Office show that the volume of retail sales increased by 3.3% in January compared to the previous month on the back of stronger car and furniture sales.
The CSO said there was an increase of 8.8% in the annual figure.
If car sales are excluded, the CSO said there was a decrease of 0.1% in the volume of retail sales in January from December while it reported an increase of 4.8% in the annual figure.
Today's figures show that the sectors with the largest monthly increases were "motor trades", which rose by 4.5% on the back of demand for the new 151 registration plates.
"Other retail sales" increased by 4% and "furniture and lighting" sales grew by 3.9%.
"Other retail sales" include the likes of home heating oil and sales in specialised stores such as jewellers and toy shops.
The sectors with the largest monthly falls were "food, beverages and tobacco" as well as "pharmaceuticals, medical and cosmetic articles" with sales slumping 6.3% in both areas. "Department stores" sales also eased by 3.2%.
The CSO also said that the value of retail sales rose by 2.9% in January on a monthly basis, while they increased by 5.5% on an annual basis.
