Shop price deflation was steady at 0.1% in July, the second consecutive month of deflation since October last year. This was below the 12- and six-month average price increases of 0.3% and 0.4% respectively.

Fresh-food inflation slowed during the month to 1.2% from 1.4% in June, and food inflation eased to 1.7% in July from 1.8% the previous month, according to the BRC Nielsen Shop Price Index.

Ambient food prices increased from 2.3% in June to 2.4% in July, but non-food prices fell 1.2%, the same rate of decrease as in June.

Out of the non-food categories, shop prices inflated for three and deflated for three. As consumer confidence remained low retailers continued to compete using discounts to attract shoppers.