Inflation may have peaked

The boss of outdoor clothing retailer Mountain Warehouse said the UK’s surging inflation has peaked as he unveiled a near-20% rise in half-year profits.

Chief executive Mark Neale said he was not surprised that inflation held steady last month and said some of the firm’s price tags were starting to fall.

The company has stores in Dundee, Perth, Pitlochry and Dunfermline as part of its portfolio of 270 shops.

Mr Neale said: “I think (inflation) has peaked. I certainly see no more inflation in the system from our point of view and I cannot see much more currencyrelated inflation in anybody else’s businesses really.”

The Consumer Prices Index (CPI) was widely expected to reach 3.1% in October, up from 3% in September, intensifying the squeeze on consumer spending power ahead of the Christmas season.

Instead, CPI held steady at 3%, leaving economists split on whether inflation has finally topped out or will continue to push higher, with the Bank of England forecasting the cost of living to reach 3.2% during the autumn.

Mountain Warehouse brushed aside the woes enveloping the British high street, lifting pre-tax profits 18% to £4.7 million and opening 18 new stores in the UK and overseas.

Sales rose 19% to a record £91.6m for the six months to August 27, with its international business proving a standout performer, with sales surging 50% and counting for around 25% of total revenues.

Steve Brown. Picture: The Mountain Warehouse shop on Murraygate, Dundee. The retailer saw its pre-tax profits rise 18% to £4.7m.