Next says price pressures will ease next year

Next store, Westfield Centre, London
Image caption The retailer said cost pressures would ease next year

Fashion retailer Next says it does not expect to increase its prices in spring next year, as cost pressures are set to be "more benign" in 2012.

Lower cotton prices, more factory capacity in Asia and the end of the impact from the VAT rise mean retail prices are unlikely to rise, Next said.

However, it said cost price inflation of about 8% would continue into the second half of this year.

Next also said that group sales rose 3.2% in the 26 weeks to 30 July.

Sales at its High Street stores were down 1.7% during the period, while sales from the Next Directory rose 15.1% - partly flattered by an increase in the amount of sale stock compared with last year.

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