Fashion chain Next expects clothing inflation to ease

Next now expects like-for-like price inflation in spring/summer of 7% and 3% in autumn/winter, down from its previous forecast of 8% and 6% respectively.

In the first eight weeks of its new financial year full-price sales were down 2%, in line with its expectations.

Fashion retailer Next reported a better-than-expected 5.7% rise in annual profit on Wednesday and said it would not need to increase prices by as much as previously thought.

Next, which trades from about 500 stores and online and is often considered a good barometer of how British consumers are faring, said inflationary pressures were expected to ease as freight costs drop and the cost of goods improve.