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Next warns of steeper price rises later this year

Retail giant Next has forecast that it will have to hike prices even more later this year.

The retailer said houseware prices will increase by 13% and fashion prices by 6.5% in the second half of 2022, for an average of 8% overall.

Clothing prices are already rising, with inflation data showing that for the year to February 2022, clothing and footwear prices increased a combined 8.8%.

The retailer still expects profits of £850m this year.

Next had already warned of incoming price increases in January, but has now raised its estimate for price increases in the second half of the year to 8% from 6%.

It’s still forecasting overall sales growth — despite the price hikes — but not as much as first thought, which it says is due to the closure of its Ukrainian and Russian sites.