Marketing strategies such as using promotional labels could become more popular after experts noted that special offers from supermarkets are helping to curb inflation.

The Office for National Statistics this week reported that inflation dropped from 4.4 per cent in February 2011 to four per cent in March.

According to the British Retail Consortium (BRC), this drop has come about partly because of "fierce competition" in the retail sector.

Indeed, it noted that a growing number of supermarkets are responding to weak consumer demand by offering more and more promotions and discounts.

Stephen Robertson, director of the BRC, commented: "These figures confirm shop prices are not the cause of inflation - they're actually making the biggest contribution to bringing it down."

The organisation has therefore urged the Bank of England not to raise interest rates, as people's disposable incomes are under "extreme pressure".

Similar views have been expressed by the British Chambers of Commerce, which said the inflation figures support the argument for delaying a rate hike until the economy is on a more secure footing.

Denny Bros Ltd, 13 April 2011