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Shop prices in the UK tumbled for a 14th consecutive month in June and at their steepest level since December 2006, according to a report by British Retail Consortium (BRC)/Nielsen.

The overall price of items declined by 1.8% compared with June 2013, with the price of clothes down by 13.7% year-on-year.

During the period, food prices were up 0.6%, an eight-year low, while non-food prices fell 3.4%, again the lowest since the index began in 2006.

The continuing price falls are mainly driven by strong pound, which has made imports cheaper, as well as the escalating supermarket price war and lower global commodity price inflation in high street.

BRC director-general Helen Dickinson said stable commodity markets and the continued strength of sterling suggested that shop price inflation is set to remain low over the medium term.

"Fierce competition among grocers has driven food price inflation to record low levels and with some grocers having announced plans to keep prices down, consumers stand to benefit for a while to come.

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"While the economic recovery continues to gather pace it was not all good news as household disposable incomes remain under pressure. Interestingly, while wage rises remain lacklustre throughout the economy the squeeze on disposable incomes is not coming from retail but other areas of the economy such as leisure and recreational activities," she added.

Nielsen Retailer and Business Insight Head Mike Watkins said, "Food inflation is still low, many supermarkets are price cutting and non-food prices remain deflationary, so the high street continues to generate little inflationary pressure."