Discounts are taking their toll on retailers

Lower deflation in men’s and children’s clothing and accessories were the main causes of a slowing rate. Women’s clothing also slowed but to a lesser extent.

Footwear showed an acceleration in its deflation rate and only babywear showed prices up on a year ago.

Annual deflation in the electricals category slowed to 3.3 per cent in May from 3.7 per cent in April, the lowest deflation rate since June 2011.

Slowing deflation in audio and visual equipment out-weighed accelerating deflation in household appliances.

With the first of the summer’s sporting events set to begin later this week, retailers have used a range of discounts and promotions to entice consumers to spend.