Food prices fell by a record 1.1% on the year in August, according to the British Retail Consortium-Nielsen shop price index. Non-food items fell by 2.5%.
BRC chief executive Helen Dickinson warned, however, that that the fall in the value of sterling after the Brexit vote would put upward pressure on shop prices.
A monthly BRC and KPMG report showed retail sales fell by 0.3% on the year, while like-for-like sales were down 0.9%. In July, volumes had risen by 1.9% and 1.1% respectively.
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