High street shop prices in June fell for the 26th consecutive quarter month as retailers ramped up efforts to woo shoppers with summer promotions.
Shop prices fell 1.3 per cent on the year, the smallest decline since January, after a 1.p per cent drop in May, according to the British Retail Consortium and Nielsen.
BRC director general Helen Dickinson, said: "Consumer confidence hit a 15 year high which suggests that shoppers will feel more comfortable about buying major purchases. It also suggests that consumer spending, one of the main drivers of the recovery, should remain robust over the summer.
"We're seeing a strong appetite for consumer credit, inflation remains at an historic low, unemployment continues to fall and wages have started to rise, the wider macro-economic data continues to be supportive for the consumer."
Food reported annual deflation of 0.4 per cent; the lowest rate since February 2015, which the BRC attributed to an oil price rebound.