Shop Prices Fall At Steepest Rate Since 2006
The prices of goods in UK stores fell for a 14th consecutive month in June and at their steepest level since December 2006.
The calculation - in the latest British Retail Consortium/Nielsen shop price index - showed deflation hit 1.8% in the month from a year ago, accelerating from a figure of 1.4% in May.
The report stated that the tumbling cost of clothing and electrical goods - attributed mainly to discounting - led the charge and while food prices rose, the pace of price growth was also at an eight-year low at 0.6%.
Clothing deflation soared to 13.7% from 11.4% while electrical goods fell 4% in June compared to 3.1% in May.
The report said a price war among supermarkets - as major chains battle the challenge from hard discounters - was a major factor in keeping food cost increases in check.
But it also highlighted the effect of a strong pound on import costs and cheaper commodity costs.
British Retail Consortium director general Helen Dickinson said: "This is the deepest level of deflation in non-food and the lowest rate of inflation for food since 2006 when our records began.
"The backdrop was equally promising with stable commodity markets and the continued strength of sterling suggesting inflation is set to remain low in the medium term."
Nielsen's head of retail and business insight Mike Watkins said: "Food inflation is still low, many supermarkets are price cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure."