With the Bank of England raising interest rates, inflation is expected to continue throughout 2023, with consumers to see price increases in clothing and accessories.
Retail giant Next, which earlier this week posted a 5.7 percent rise in pre-tax profits to 870.4 million pounds for the year to January, said it expected prices to rise by 7 percent in the spring and summer of 2023, and 3 percent in the autumn and winter. Slightly less than the increases it warned of in January, reported the BBC.
As both supply chain costs and price of shipping are levelling off, retailers are paying better rates than in 2022.
Operating approximately 500 stores in the UK and a successful e-commerce channel, Next is often regarded as a barometer for the health of the UK high street.
After significant price hikes in 2022, when a weaker sterling and global supply chain costs soared, Next originally forecast prices to rise by 8 percent in H1 of 2023 and 6 percent in H2.
Despite the strong results, Next is forecasting 2023 will be bumpy, with sales and profits falling as energy and wage costs remain high, said the BBC.
Article source: BBC, Bank of England