Turnover in the retail sector grew for the twelfth month in a row, although prices continued to fall, according to figures published on Tuesday by the central statistics agency CBS.
In the first quarter of 2015, retail sales rose 2%, but prices were an average 1.8% lower than a year ago, the CBS said.
Furniture, carpet and curtains retailers saw the biggest rise in turnover in over seven years.
Consumer electronics and clothing shops saw the biggest fall in prices in years, while shops selling household items have seen prices drop for several successive months.
Turnover for post order companies and online retailers rose 13% in the first quarter. However, online retailers only account for 7% of the total retail sector turnover, the CBS said.
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