Inflation and the squeeze on shops PDF Print E-mail
At George Liasi's barber shop, staff make their money from cuts. 

But one thing they say that has not been reduced since 2005 is the price of a haircut.

Mr Liasi, who has 47 years of experience cutting hair, says that he has always charged £9 for a gentleman's cut since he took over at the shop.

But this is not a picture mirrored across the country, where shops are raising their prices - usually because they are facing cost pressures from their own suppliers.

This is putting the squeeze on consumers, who are seeing the cost of living rise rapidly. Latest official figures showed that the rate of inflation jumped to 5.2% in September, the highest rate for three years.

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