Australia posted a merchandise trade deficit of A$980 million in January, the Australian Bureau of Statistics said on Thursday - representing a deficit increase of A$477 million or 95 percent decline over the previous month.

The headline figure missed forecasts for a shortfall of A$925 million following the downwardly revised A$503 million deficit in December (originally -A$436 million).

Exports were up A$343 million or 1.0 percent on month to A$27.529 billion.

Non-rural goods rose A$398 million (2 percent) and non-monetary gold rose A$29 million (2 percent).

Rural goods fell A$70 million (2 percent) and net exports of goods under merchanting fell A$10 million (23 percent). Services credits fell A$4 million.

Imports gained A$820 million or 3.0 percent to A$28.509 billion.

Intermediate and other merchandise goods rose A$346m (4 percent), capital goods rose A$308 million (6 percent) and consumption goods rose A$192 million (3 percent).

Non-monetary gold fell A$28 million (10 percent), while services debits rose A$2 million.

Also on Thursday, the ABS said that the total value of retail sales in Australia was up a seasonally adjusted 0.4 percent on month in January, standing at A$23.880 billion.

That was in line with expectations following the 0.2 percent increase in December.

Among the individual components of the data, household goods retailing was up 0.3percent, along with food retailing (0.1 percent), clothing, footwear and personal accessory retailing (0.7 percent), cafes, restaurants and takeaway food services (0.3 percent) and department stores (0.5 percent).

Other retailing fell 0.2 percent.

By region, sales in Queensland and Western Australia were up 0.4 percent, followed by New South Wales (0.1 percent), South Australia (0.3 percent), Tasmania (0.1 percent) and the Northern Territory (0.1 percent).

Sales in Victoria and the Australian Capital Territory were roughly flat.