The British Retail Consortium (BRC) says UK shop owners are slashing prices at the fastest rate in eight years in order to boost sales.

It said competition among retailers for market share is driving the record drop in prices, across electrical goods, clothing and furniture sectors.

Food inflation slowed to 0.8 per cent in February, the lowest ever recorded by the BRC.

But deflation in non-food products sent prices plummeting 3.2 per cent in the 12 months to March, compared with three per cent in February.

Helen Dickinson, BRC director general, said it was good news for consumers but that retailers would need assistance keeping profit margins healthy.

“keeping costs down for ordinary people is just as important. And that's why the continuing deflation we are seeing in shop prices is such good news for consumers.

"The outlook on commodity prices shows some upwards pressures. So, while we know retailers will be working hard to sustain these low prices, continued support from government on other costs will be key to maintaining this positive trend."