The overall shop prices in the UK have declined from 1.0% in January 2014 to 1.4% in February 2014, according to the British Retail Consortium (BRC) and Nielsen Shop Price Index.
The prices have been continuously falling for the last ten months and are lowest since the index began in December 2006.
The February 2014 index also found that food inflation slowed to 1.1% from 1.5% in January, and non-food deflation increased from 2.7% in January to 3.0% in February 2014.
BRC director general Helen Dickinson said this is the fastest fall seen in prices which are 1.4% down overall in February, and is also the longest sustained period of price decreases they have witnessed, now ten months in a row.
"Many of the larger food retailers have been looking closely at their investment in promotions and price cuts, suggesting competition could intensify further. This should mean consumer price inflation remains at low levels in the coming months. It is clear that retailers’ hard work to keep prices low for UK consumers is having considerable success," Dickinson added.
Nielsen retailer and business insight head Mike Watkins said they have seen further falls in the Shop Price Index at the start of 2014 in particular in food.
"This is reflective of a challenging trading environment due to weather and weak demand, but also more favourable global supply conditions during the second part of 2013. Looking ahead, we still anticipate shop prices to remain below CPI for the immediate future," Watkins added.
