How do pound shops avoid passing on VAT rises?

Soaring commodity prices and rising fuel costs are expected to push December inflation figures up.

But what impact does this have on businesses and can they avoid passing on their increased costs to the consumer?

The 99p Store, which is 10 years old today, claims it can. It has grown from one shop in Holloway to 138 currently and plans to open a further 600 stores in the next decade.

Breakfast's Simon Jack spoke to Hussein Lalani, chief executive of 99p Stores, who said the firm worked with brands to ensure the prices were kept under £1.

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