And although household income has been squeezed by slow wage growth and high inflation in recent years, data last week showed average weekly earnings poised to overtake price growth, easing the pressure on living standards.
Friday's data showed prices of retail goods fell 0.5 percent in March, the biggest decline since September 2009, driven by falling fuel prices.
Overall, the figures suggested Britain's economy is on course to record robust economic growth in the first quarter. The Bank of England this week bumped up its estimate for growth during the period to 1.0 percent.
A first reading of British gross domestic product in the January-March period is due to be announced on April 29.
BoE policymakers have stressed that for the recovery to be sustainable it needs to be broadened out by exports and investment.
A separate survey from the British Retail Consortium on Thursday showed the later-than-usual Easter helped boost retail sales in April after a weak March.
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