British shop prices fell at their fastest rate since December 2006 driven by aggressive discounting and "fierce" competition among retailers, the British Retail Consortium (BRC) said on Wednesday.
The retail body said prices in July dropped 1.9 percent from a year ago, marking the fifteenth consecutive month of falling prices and the quickest deflation of prices in seven and a half years. Shop prices fell 1.8 percent in June.
Food inflation was just 0.3 percent, the lowest rise on record, compared with the 0.6 percent seen last month. Non-food items, which include furniture, books and clothing, saw prices plunge 3.3 percent in July.
Helen Dickinson, director general of the BRC said the fall in prices will benefit consumers.