Home / Business and Economy / Middle East War Sparks UK Price Hikes
Middle East War Sparks UK Price Hikes
27 Mar
Summary
- Next predicts price increases of 4-10% starting September.
- Higher fuel and air freight costs will add £15 million to Next.
- HMV anticipates a sales slowdown due to economic pressures.
High Street retailers are bracing for increased costs and reduced consumer spending due to the conflict in the Middle East. Next's CEO, Lord Wolfson, warned of knock-on effects on prices and demand, projecting potential increases of 4% to 10% from September. A 1% to 2% rise is anticipated from June, with higher fuel and air freight costs estimated to add £15 million to the company's outgoings.
HMV's managing director, Phil Halliday, echoed these concerns, identifying both sales and cost problems. He anticipates a slowdown, suggesting customers may face genuine economic pressures or a negative shift in sentiment. H&M also noted potential additional cost pressures from geopolitical instability in the Middle East, acknowledging the ongoing inflationary environment for consumers.
