Retail prices have recorded the weakest outcome in six months, according to National Australia Bank monthly business survey for January 2012.

According to the report, retail prices weakened further in January dropping a significant 0.6 per cent in the month at a quarterly rate from -0.1 per cent in December 2011. This implies there was another round of significant retail discounting during the post-Christmas period.

As a result, business conditions for the retail sector also weakened a little in the month.

Despite this, retail business confidence was surprisingly the most confident industry, growing 6 points, indicating the industry was looking to benefit from the recent RBA cuts and have a solid pick up in forward orders.

Additionally, retail trading conditions remained unchanged at -9 points.