Food manufacturers that use promotional labels could benefit from rolling out more locally-sourced and sustainable products.

A poll by the Department for Environment, Food and Rural Affairs (Defra) revealed that factors such as where food is produced do affect people's buying decisions.

Indeed, food minister Jim Paice stated that the findings show that while price is "understandably important", it is not the only issue being considered by consumers during their weekly shop.

However, the Defra research indicated that many people are confused by the information displayed on product labels.

The government department has therefore urged both producers and retailers to "make sure labels are clear and effective".

Defra added that they must also "understand the difference between what consumers care about" and what they are actually able to purchase when they go shopping.

This comes after the British Retail Consortium revealed that food inflation in the UK dropped from 4.5 per cent in February 2011 to 4 per cent in the subsequent month.

Denny Bros Ltd, 07 April 2011