UK shop prices were down 1.4% in December compared to the same month in 2015, however clothing and footwear prices increased month-on-month for the first time in almost two years.
Overall, shop prices were down 1.4% last month, slowing from 1.7% in the previous two months, according to the BRC-Nielsen Shop Price Index.
Deflation across non-food prices slowed to 1.9%, down from 2.3% in November - the weakest rate since June 2015.
BRC chief executive Helen Dickinson said the devaluation of the pound would hit inflation in 2017: “Timings of seasonal discounts can cause monthly fluctuations at this time of year and retailers have continued to find ways to mitigate the impact on consumers. However, we expect the general trend in inflation to be upwards over 2017.”