Next blames 10% price rise on cost of cotton

INCREASES in cotton prices, VAT and labour rates are forcing the price of fashion lines up, with retailer Next expecting to increase prices by as much as 10% this year.

It said the rises could come in autumn and winter as cotton prices climb to record highs, while wage demands in the Far East have also increased.

The British retailer, which boasts a chain of more than 500 stores in Britain and Ireland, has implemented average price rises of around 6% on its spring and summer products.