Prices on the UK's high streets recorded their first monthly gain so far this year during May.
The British Retail Consortium said its shop price index for last month showed overall prices were up 0.42 per cent from April led by rises in both food and non-food items.
The year-on-year figure, meanwhile, fell 0.48 per cent. The drop is the smallest since October last year when prices fell by 0.04 per cent.
Prices have now fallen on an annual basis for eight months running.
BRC director general, Kevin Hawkins played down the month-on-month rise.
"It is understandable that May saw a slight increase in prices compared to April, after the Easter sales ended," he said.
"But the underlying trend is clear, and has been for the past year.
"Prices are falling at a time when fixed costs are rising. Price deflation, and the fierce competition which generates it, clearly benefits consumers, but at the cost of substantial pressure on retail margins," he added.
Mr Hawkins believes a Bank of England rate hike at this point would have a detrimental effect on the sector and further erode the already fragile confidence of many consumers.
The Monetary Policy Committee is today expected to announce another hold on interest rates.
