Furniture retail price deflation narrowed in December suggesting firms were able hold off on major discounting until the post-Christmas sale period.

Official Office for National Statistics data recorded a 0.3 per cent dip in year-on-year furniture and furnishings prices last month, changing from the 1.3 per cent deflation reported for November.

Carpets and flooring consumer price inflation increased from 3.3 per cent in November to 3.6 per cent last month.

The sector specific figures come against a backdrop of falling overall inflation, with CPI halving to 0.5 per cent last month, largely the result of the falling price of oil.