Next Warns of Rising Evidence of Price Hike Threats

By Evans Momodu
1 minute read


Consumers are bracing for a wave of price hikes across various sectors, with businesses citing increased costs from recent policy changes and economic pressures.

Next, the homewares and fashion retailer, has announced a 1% price increase for 2025, attributing the rise to a £67 million increase in wage costs, driven by changes to employer National Insurance contributions set to take effect in April.

The retailer also expressed caution about economic conditions in 2025, signaling potential challenges ahead for both consumers and businesses.

Analysis indicates that energy bills may see sharper-than-expected rises due to low gas storage levels across Europe.

Households are also facing above-inflation increases in water bills and council tax, adding to financial strains. A combined increase in energy, water, and council tax costs is expected to amount to £270 from April.

Grocery prices are another area of concern. Kantar Worldpanel reported annual grocery inflation of 3.7% last month, its highest level since March 2024. This rise comes despite aggressive discounting by retailers during the Christmas shopping period.

The fastest price increases were observed in chilled smoothies and juices, chocolate confectionery, and skincare products.

These developments highlight mounting cost pressures for consumers as businesses navigate rising operational expenses.
Source: Sky news