The cost of goods in the shops dipped last month (April) to a three and a half year low.

Overall shop price inflation fell to 0.4% in April from 1.4% in March, according to the latest figures from the British Retail Consortium.

Food prices fell from 3.5% in March to 2.9% in April, while non-food items fell by 1% after a 0.2% rise in March.

Helen Dickinson, director general of the British Retail Consortium, said: “Household finances are still under pressure but it’s clear that isn’t coming from the shops.

In April, overall shop price inflation was sharply down on the previous month, to its lowest for three and a half years, as a result of retailers working harder on promotions to encourage customers and the easing of some commodity costs.

“In particular, price competition on non-food goods intensified in the face of average incomes rising at their slowest for more than a decade and poor demand for seasonal products.

"Spring lines, in fashion and gardening for example, have not taken off in the way they did last year because warmer weather has been much more reluctant to take hold.

“Food inflation slowed in April, for fresh as well as tinned and packet items, thanks to promotional activity and falls in a number of key costs working through.”

Mike Watkins, head of retailer and Business Insight, Nielsen, said: “Retailers will now be looking to keep prices competitive over the next few weeks to keep whatever momentum there is in sales growth going, and for high street retailers this could require summer discounts to start sooner rather than later.“