Shop prices fell for the 26th consecutive month in June, dropping 1.3% on average, driven by high street discounting.
According to the British Retail Consortium, there was a slight slowdown in falling prices last month with clothing and footwear falling by just 2.5 percentage points to 3.9%, its lowest figure since March 2013. This is against a 13.7% decline a year ago, the highest deflation on record.
The BRC said womenswear and accessories reported a “significant slowing” in their deflation rates, closely followed by kidswear. The babywear category remained well above the overall rate.
BRC director general Helen Dickinson said: “Consumer confidence hit a 15-year high, which suggests that shoppers will feel more comfortable about buying major purchases. It also suggests that consumer spending, one of the main drivers of the recovery, should remain robust over the summer.
Mike Watkins, head of retailer and business insight at research firm Nielsen, said: “Retailers continue to use price cuts and promotions to stimulate sales, which is helping to maintain shop price deflation, and we see little evidence to suggest that prices will rise in the near future. Deflation and price-led competition will continue to be a key driver of sales growth for some time yet.”