Shop prices are falling at the fastest pace in more than a year as retailers battle for a bigger slice of shrinking household incomes.
Deflation in the shops accelerated to 1% in March compared with last year, according to a monthly release by the British Retail Consortium and Nielsen. In February prices fell at annual rate of 0.8%.
Retailers are having to contend with cash-strapped consumers and online rivals with lower overheads. High inflation, which has cut annual earnings in real terms for about a year, has left households with little to spend on discretionary items.
