UK shop prices decreased for the seventh straight month in December as retailers resorted to discounting, a survey from the British Retail Consortium showed on Friday.
The BRC-Nielsen shop price index dropped 0.4 percent year-on-year in December.
The decline was driven by a 1.5 percent fall in non-food prices, while food prices increased 1.4 percent.
Shop prices continued to fall in December as receding inflationary pressures, weak consumer demand and intense competition combined to keep price increases at bay, Helen Dickinson chief executive at BRC, said.
"While we expect future upward pressures on shop prices from movements in global food prices, these are likely to be relatively modest," Dickinson said. The highest risk to prices remains the outcome of Brexit negotiations.