Prices last month dropped further that at the same time last year as a result of the sales, despite complaints by shoppers that Malta fails to compete with the price slashing that goes on in Europe's major centres.

Figures released yesterday by the National Statistics Office show a 2.25 per cent fall in prices in January when compared to December, mostly attributable to "seasonal price reductions". This compares to a drop of just 0.97 per cent in January 2008 compared to the previous month.

The reduction in retail prices may provide some solace to hard-pressed consumers, coming at the heels of a year which saw record inflation figures, hitting 4.26 per cent on a 12-month moving average.

The decrease in January was mainly caused by a slide of 19.46 per cent in clothing and footwear prices, the NSO said.

But as sales in London and other European cities, particularly the ones worst hit by the financial crisis, hit record proportions in January, many locals had complained to this newspaper that the reductions offered in Malta's retail outlets were not genuine.

The retailers' representative had defended the shops, insisting that the feedback from consumers had been positive and that the discounts were "hefty". It was pointed out that the reductions had followed previous uncustomary discounts given during the Christmas period.