February marked the 34th consecutive month of shop price deflation, according to BRC-Nielsen, which recorded overall deflation of 2% in February from 1.8% in January.

Annual deflation in the Furniture and Floorcoverings category accelerated to 1.7% in February from January’s 1.4% decline, the deepest deflation rate since September 2015. Downward pressure was exerted by the Furniture, Furnishings and Carpets category, which reported an acceleration in its deflation rate, while deflation in the Household Textiles category remained unchanged.

According to BRC-Nielsen, the latest data from the Bank of England shows that mortgage approvals for January totalled 74,581, from 71,335 in December – a two-year high. This development should provide some boost to furniture retailers, although the surge in buy-to-let purchases is likely to cease shortly.

On a month-on-month basis, prices rose 1.8% from the 2.2% decline in January, the largest rise since August 2015.

BRC chief executive, Helen Dickinson OBE, says: “With consumer confidence falling back and wage growth remaining subdued, retailers continue to support their customers with prices and promotions to maintain market share in the tough trading environment.

“Against this backdrop we are asking the Government to work more collaboratively with us to address business rates and ensure the successful implementation of policy measures, such as the National Living Wage and the apprenticeship levy.”