By Daniel Hunter

Overall shop prices deflated by 1.9% again in May, according to the British Retail Consortium (BRC).

The figures show that May continued the deflation seen in April.

Despite the ongoing supermarket price war, it was non-food products that saw bigger falls. Non-food prices were down 2.5% compared with May 2014. Food prices fell by 0.9%.

BRC Director General, Helen Dickinson, said: “May saw the 25th consecutive month of falling shop prices and falling non-food prices now in their third year.

“Wider macro-economic data continues to be supportive for the consumer. The main measure of UK inflation turned negative in April for the first time on record, with the rate falling to -0.1%. This is expected to be temporary and should result in increased consumer spending. The price of staple commodities (wheat, corn and soybean) remain low and consumer confidence is still hitting a thirteen year high.

“Now that the General Election has taken place, government policy is likely to advance rapidly. A number of areas will obviously require consideration, not least, ensuring that the structural review of business rates remains ambitious and far-reaching. This is vitally important for retailers who are presently burdened with above inflation operating costs.”