Shop prices dropped by 1.6% in August, compared with a 1.3% decline in July, as retailers used discounting to try to tempt shoppers to spend.

This was below both the 12- and six-month average price decreases of 1% and 1.5% respectively, according to the latest figures from the BRC and Nielsen.

Non-food prices fell by 0.5% from a 2.9% decline in July to a 3.4% drop in August as shoppers limit their spend on discretionary items.