According to the British Retail Consortium (BRC), the U.K. shop prices declined by 2.0% year-on-year in February, after a 1.8% decline in January.

The decline was mainly driven by a drop in non-food prices, which plunged 3.0% year-on-year in February.

Food prices declined at an annual rate of 0.4% in February.

"Another fall in shop prices was seen in February, down 2.0 per cent compared with a year ago and a further fall on the numbers we saw in January as competition in the industry continues apace. This now marks the 34th consecutive month of price drops and 35th for non-food prices," BRC Chief Executive, Helen Dickinson, said.