"A lot depends on what happens to wage inflation," Simon Wolfson told Reuters after Next reported better-than-expected Christmas trading.

"The positive for retail is that we can adjust our pricing. So if wage inflation is in line with our price increases, I don't think it will be, but if it is then it's not going to be nearly as much of a problem as if wage inflation is a long way behind our prices," he said.

Wolfson added that wage price inflation is a bad thing for the economy as a whole - "so I'm not advocating it in any way."

Next forecast its prices would rise 3.7% in the first half of 2022 and 6.0% in the second half due to higher freight rates and increased manufacturing costs.

(Reporting by James Davey, Editing by Paul Sandle)