The average price of non-food items sold in UK shops fell 2.7 per cent in January compared to the same month last year, according to the latest data.

The news is evidence of continued pressure on retailers despite signs of growing consumer confidence.

The BRC-Nielsen shop price index showed prices falling at their fastest rate since 2007, although food products continued to increase in value.

Food inflation slowed to 1.5 per cent in January from 1.7 per cent in December, the figures stated.

January is always a key month for sales and promotions but discounts have been deeper and more widespread than last year and we are seeing this trend continuing,” said the BRC’s Helen Dickinson.

“Our figures show that there have been particularly good deals to be had in clothing, furniture and electrical items this month as retailers prepare for their new collections.”