Shop prices continued to fall in March, as non-food retailers struggled to entice shoppers to buy during lockdown.

Shop prices fell 2.4% in March, the same rate as decline as February, as lockdown restrictions continued to hit consumer demand, according to the BRC-Nielsen shop price index.

This was below the 12- and six-month average price decreases of 1.8% and 2.0% respectively.

Non-food prices were hit particularly badly, falling at a rate of 4%, compared with 3.9% in February as consumers prioritised essential items.

This was the fastest rate of decline since May 2020 and was below the 12- and six-month average price declines which both stood at 3.5%.

Food inflation inched up 0.3% in March, buoyed by ambient food prices, which were up 1.7%, compared with a 1.6% rise the previous month.

BRC chief executive Helen Dickinson said: “Retail prices fell again in March as the third consecutive month of lockdown led many non-food retailers, especially clothing, to heavily discount their products.

“Low demand and intense competition online will help thrifty consumers find the bargains they are looking for. Prices of fashion and footwear have seen double-digit declines in 11 of the past 12 months, highlighting how those worst hit have been working hard to tempt consumer spending.

“While food prices inched up slightly compared to last year, they remain significantly below long-term averages, as grocers fiercely protect their market shares.

Nielsen head of insight Mike Watkins added: “With consumer spend limited by pandemic restrictions, non-food retailers are keeping any supply-side driven price increases to a minimum and in some cases are reducing prices, to encourage shoppers to maintain spending in the run-up to Easter.

“Whilst food retailers have seen top-line sales grow at around 9% since the start of the year, we are now lapping the extreme comparatives of March last year and shop price inflation in food still remains very low and less than CPI.”