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| Next says prices to rise by less than expected this year | |
| (32 minutes later) | |
| High Street retailer Next has said it will put up its prices by less than expected this year. | High Street retailer Next has said it will put up its prices by less than expected this year. |
| It said it now expected prices to rise by 7% in the spring and summer of 2023, and 3% in the autumn and winter - slightly less than the increases it warned of in January. | It said it now expected prices to rise by 7% in the spring and summer of 2023, and 3% in the autumn and winter - slightly less than the increases it warned of in January. |
| The retailer credited falling shipping and production costs for the change. | The retailer credited falling shipping and production costs for the change. |
| It came as Next reported a 5.7% rise in pre-tax profits to £870.4m for the year to January. | It came as Next reported a 5.7% rise in pre-tax profits to £870.4m for the year to January. |
| On Tuesday, the retailer also announced it would buy the Cath Kidston fashion brand for £8.5m, but not its shops. | On Tuesday, the retailer also announced it would buy the Cath Kidston fashion brand for £8.5m, but not its shops. |
| Next has about 500 stores and trades online. It is often considered a good indicator of how the British High Street is doing. | Next has about 500 stores and trades online. It is often considered a good indicator of how the British High Street is doing. |
| The retailer had already put up its prices in 2022, blaming rising production costs and a weaker pound. | |
| And in January it said prices would have to rise again by 8% this spring and summer, and by a further 6% this autumn. | And in January it said prices would have to rise again by 8% this spring and summer, and by a further 6% this autumn. |
| Despite the strong results, Next said it predicted 2023 would be bumpy, with sales and profits falling due to high wage and energy costs. | |
| Inflation - the rate at which prices rise - has soared in the last year, putting households and businesses under pressure. | |
| The Bank of England expects annual inflation to fall to under 3% by the end of the year, as energy and food costs come down. However, last month there was a surprise jump to 10.4% from 10.1% in January. | |
| Governor Andrew Bailey urged businesses not to put up prices faster than inflation, warning it would drive up the cost of living even further. | |
| "I would say to people who are setting prices - please understand, if we get inflation embedded, interest rates will have to go up further and higher inflation really benefits nobody," Andrew Bailey told the BBC's Today programme. | |
| The Bank of England has put up interest rates 11 times since December 2021 to try to control rising prices. | |
| Related Topics | Related Topics |
| Next | Next |
| Companies | Companies |
| Retailing | Retailing |