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British shop prices were down 1.6 percent on year in August, the British Retail Consortium said on Wednesday.
That beat expectations for a decline of 0.2 percent following the 1.9 percent fall in July.
Food prices gained just 0.3 percent in August, unchanged from the record low in the previous month.
"As the UK economy continues to pick up, the benefits of subdued cost increases incurred by retailers will be passed on to consumers," said Helen Dickinson, director general of the BRC.
