Deflation in the clothing and footwear category slowed to 3.9% in July from 4.8% in June 2012.
Women’s clothing was the only category in the sector to report an acceleration in its deflation rate, with kidswear and accessories notably reporting a slowing in their rates.
Although it did not split out figures, the British Retail Consotium said widespread discounting had maintained or increased as retailers made way for their new autumn collections.
The price of cotton is currently 8% down on the previous month, which was likely to provide further downward pressure to clothing prices in the coming months, BRC said, although added that the introduction of new season collections could provide a boost to sales.
Overall shop price inflation slowed to 1%, from 1.1% the previous month, according to the BRC-Nielsen Shop Price Index. Non-food deflation remained stable at 0.3% in June, the sixth consecutive deflationary month.
BRC director general Stephen Robertson said: “Non–food goods were cheaper than a year ago for these sixth months as retailers discounted to generate sales. Great news for customers who have spare money to spend on clothing, electricals and furniture. But many don’t have money available or the confidence to spend even with prices down.”