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Middle East Conflict Drives Retail Price Hikes in Europe

3/27/2026

24 4 Full Breakdown

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Retailers Face Inflation

European retailers say the prolonged Middle East conflict is increasing prices and dampening consumer demand.
H&M Group Chief Executive Officer warns that high energy prices could trigger inflationary pressures.
Next anticipates price increases of 1% to 2% in June, with bigger hikes if the conflict persists.
Next has not yet seen a drop in UK sales.
UK consumer confidence has plummeted, with similar trends in Germany and Italy.

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Next Reports Profits

Next reports full-year pre-tax profits of £1.16 billion.
It faces £15 million in additional fuel and air freight costs linked to the Middle East conflict.
Simon Wolfson, chief executive of Next plc, says the costs could be offset by savings elsewhere.
Next's shares rose 5% after the report, and the broader UK outlook remains weak with 0.7% growth predicted this year.

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Retailers Face Inflation

European retailers say the prolonged Middle East conflict is increasing prices and dampening consumer demand.
H&M Group Chief Executive Officer warns that high energy prices could trigger inflationary pressures.
Next anticipates price increases of 1% to 2% in June, with bigger hikes if the conflict persists.
Next has not yet seen a drop in UK sales.
UK consumer confidence has plummeted, with similar trends in Germany and Italy.

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