Next expects price rises to slow this year in sign that inflation is easing

Retailer reports record annual profits of £870m after stronger-than-expected sales but says 2023 could be ‘very challenging’

Next said it expects to raise prices more slowly in the coming year in a sign of easing inflation, as the clothing and homeware retailer reported record annual profits of £870m.

The FTSE 100 company increased profits by 5.7% in the year to 31 January, while total sales from trading rose by 8.4% compared with the previous year to £5.1bn, it said on Wednesday.