A fall in the cost of fresh veg took food price inflation to a three-year low in February, figures from the British Retail Consortium revealed today.

Food prices grew just 1.3% year-on-year last month, down from 2.9% in January, following 0.3% deflation in fresh food. It was running at 9% a year ago.

Overall shop price inflation fell from to 1.7% from 2.3%, with non-food inflation stuck at 1.9% as a 7.6% rise in DIY prices was offset by a 2.5% fall in the cost of electrical goods.

"Fierce retail competition is protecting customers and keeping inflation down," said Stephen Robertson, director general of the BRC. "Electricals, home entertainment and clothing are actually cheaper than they were this time last year."

"Previous falls in the value of the pound and large commodity price increases, which were pushing up food prices, have now largely worked through," he added. "Barring any lasting shocks, the price of food should continue to be relatively stable for some time."

In a separate report, researcher Kantar Worldpanel found that sales growth at Britain's grocery "multiples" fell to 5.1% in the 12 weeks to 21 February, down from 5.4% in the 12 weeks to 24 January.

It also said Tesco had increased its share of the grocery market to 30.4% 30.1%, extending its lead over second placed Asda whose share fell to 17% from 17.2%.

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