Small Bristol businesses report some customers cannot pay

Kawa Hamed said he is seeing people complaining about the cost of living every day

Small businesses say some customers are unable to afford items and services as the cost of living crisis remains, despite a fall in inflation.

The latest figures show the rate at which prices are rising had dropped to 4.6% in the year to October.

The Prime Minister has now said the government will target cutting taxes.

But Bristol-based barber Kawa Hamed said he is still having to resist putting his prices up so he does not lose customers.

"Sometimes I have people who come in and can't afford to pay," said Mr Hamed, who owns a barbers in Lawrence Weston.

"I see people every day, they are complaining about the price of life and their costs."

Mr Hamed said some items like hair wax have gone up £1 in the past year

Mr Hamed's energy bills have risen from £250 to almost £600 a month, while some items like hair wax have gone up £1 in the past year.

"It's difficult. I hope things will get better, but I never see things come down," he added.

Inflation dropping does not mean prices are going down, but they are rising less quickly than earlier in the year.

In certain areas, inflation remains high - for example with rent (6.1%), and food (10.1%).

According to the Office for National Statistics, food prices were around 30% higher in October 2023 compared to October 2021.

Joy Huntington, from Rare Butchers in Southville, said: "People are being more circumspect with the way they are spending and they are asking for advice on cheaper cuts and comparing prices, which I think is very sensible in the current climate."

Melanie Vaxevanakis said MAZI aims to tackle food insecurity for 16 to 25-year-olds living in supported accommodation

The damage caused by food inflation in particular is immense, according to Melanie Vaxavanakis, founder of the MAZI project, which helps marginalised young people in Bristol gain access to fresh food.

"We started off supporting 15 young people per week with weekly recipe kits, it's now 80, and that could be much higher if we had the capacity," she said.

"We've had a 46% increase in referrals since the start of the year."

Asked if the government should be pleased for hitting its inflation target, Ms Vaxavanakis said: "The damage has already been done. So many young people are continuously struggling to eat that day.

"There needs to be more thought about our food systems which rely too heavily on imported goods."

Joy Huntington said she thinks people are currently "weathering the storm"

The government will outline its latest spending plans on Wednesday during the Autumn Statement.

Chancellor Jeremy Hunt said: "Now we are beginning to win the battle against inflation, we can move to the next part of our plan, which is the long term growth of the British economy."

However Ms Huntington does not share the chancellor's optimism for growth.

"I think the jury's out on that. People are trying to be cheerful because we approach Christmas and you don't want to spread doom and gloom," she said.

"I think many are putting a brave face on it though and weathering the storm."