Penneys owner warns of 'substantial' cost inflation but will not increase prices further

Higher energy, raw materials and labour costs will dent the company's profit margin

Penneys has decided to limit further price increases in 2022-23 beyond those already planned.

Penneys owner Associated British Foods faces "substantial and volatile" input cost inflation that will hit results in its new financial year, it said on Tuesday, taking the shine off a 42% jump in 2021-22 profit.

AB Foods, which also owns sugar, grocery, ingredients and agricultural businesses, reiterated a September forecast that profit would fall in fiscal 2022-23.