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| Next says prices to rise by less than expected this year | Next says prices to rise by less than expected this year |
| (about 5 hours 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. |
| It said shipping costs were falling and suppliers were charging better rates. | It said shipping costs were falling and suppliers were charging better rates. |
| 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. | 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. |
| But on Wednesday, Next boss Simon Wolfson said he expected the UK to be "past peak inflation" towards the end of the year. | But on Wednesday, Next boss Simon Wolfson said he expected the UK to be "past peak inflation" towards the end of the year. |
| Why are prices rising? | Why are prices rising? |
| UK inflation rate calculator: How much are prices rising for you? | UK inflation rate calculator: How much are prices rising for you? |
| Despite the strong results, Next is forecasting 2023 will be bumpy, with sales and profits falling as energy and wage costs remain high. | |
| Most businesses have been putting up prices, with grocers Aldi and Lidl hiking them recently. | Most businesses have been putting up prices, with grocers Aldi and Lidl hiking them recently. |
| Last year bakery chain Greggs, retailer Marks & Spencer and furniture business Dunelm also announced price increases. | Last year bakery chain Greggs, retailer Marks & Spencer and furniture business Dunelm also announced price increases. |
| The Bank of England expects overall inflation - the rate at which prices rise - to fall to under 3% by the end of the year, as energy and food costs come down. | The Bank of England expects overall inflation - the rate at which prices rise - to fall to under 3% by the end of the year, as energy and food costs come down. |
| But there was a surprise jump in inflation to 10.4% in the year to February from 10.1% in January. | But there was a surprise jump in inflation to 10.4% in the year to February from 10.1% in January. |
| The Bank of England has put up interest rates 11 times since December 2021 to try to control rising prices. | The Bank of England has put up interest rates 11 times since December 2021 to try to control rising prices. |
| And Governor Andrew Bailey has urged businesses not to put up prices faster than inflation, warning it would drive up the cost of living even further. | And Governor Andrew Bailey has 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. | "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. |
| Lord Wolfson declined to comment on Mr Bailey's remarks but suggested Next would reflect falling inflation rates in its pricing. | Lord Wolfson declined to comment on Mr Bailey's remarks but suggested Next would reflect falling inflation rates in its pricing. |
| "Where we get better prices, we've passed them on to consumers… We want to remain competitive in the long run." | "Where we get better prices, we've passed them on to consumers… We want to remain competitive in the long run." |
| Related Topics | Related Topics |
| Next | Next |
| Companies | Companies |
| Retailing | Retailing |