Total shop price inflation fell to 1.7 per cent in February, down from 2.3 per cent in January.

The slowdown in inflation was caused by the growth in food ticket prices falling from 2.9 per cent in January to 1.3 per cent last month, revealed the British Retail Consortium (BRC) Shop Price Index.

Non-food prices remained stable with inflation sticking at 1.9 per cent.

“The VAT increase is putting pressure on overall shop price inflation,” said BRC director-general Stephen Robertson (pictured), “but, even so, electricals, home entertainment and clothing are actually cheaper than they were this time last year.”

Mr Robertson added: “Fierce retail competition is protecting customers and keeping inflation down.”

At Nielsen, which helps to compile the BRC Shop Price Index, senior manager for retailer services Mike Watkins commented: “Shoppers have been cautious since the start of the year so retailers are holding back on price increases wherever possible.”

He pointed out that while shop prices increased a little in February, they are no longer rising as fast.