Shop prices fell sharply in July, marking the fifteenth consecutive month of decline as food inflation dropped to its lowest rate.

The British Retail Consortium (BRC) Nielson Shop Price Index revealed prices fell 1.9% last month, once again breaking records to hit the lowest ever rate.

Food inflation fell to 0.3% in July and non-food posted deflation easing 3.3% from 3.4% the previous month.

BRC director general Helen Dickinson added: “Deep and widespread discounting across the grocery sector is intensifying with prices falling almost one per cent month-on-month – another record jump.”

Dickinson added: “Against a backdrop of stable commodity markets, the stronger sterling making imports cheaper and wavering retail spending, current levels of deflation are expected to continue.” 

Nielsen head of retailer and business insight Mike Watkins said: “Many supermarkets are reducing prices across ambient and seasonal fresh foods, which is helping shoppers make further savings on household bills.

“And on the non-food high street, retailers are maintaining the level and depth of price cuts and promotions to help drive footfall over the holiday period.”