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Cost of living: 'You have to cut back everywhere'

14 February 2012 Last updated at 17:21 GMT

The rising cost of living has slowed to 3.6%, down from 4.2% in December, according to the latest figures from the Consumer Prices Index.

However prices are increasing at almost twice the rate that wages are, and at a much faster rate than people, such as pensioners, can hope to earn interest on their savings.

Jennifer Hewitt from Liverpool, told the BBC that her family have been forced to tighten their belts in as many ways as possible.

"You may not have a holiday, you've got a much older car and you're looking around for lower-cost things and food."