Next warns of steeper price rises later this year

High street retail giant Next has predicted it will need to increase prices even further later this year.

The retailer said prices for homeware items will jump 13% and fashion prices rise 6.5% in the second half of 2022 to average an 8% increase overall.

Clothing prices are already rising, with inflation data showing overall clothing and footwear prices rose 8.8% in the year to February 2022.

The retailer said it still expects to make a £850m profit this year.

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

It still predicts sales to grow overall - despite the price rises - but not by as much as first thought, which it said was due to the closing of its Ukrainian and Russian websites.