The company blamed rising fibre prices, due to demand from China, and the devaluation of the pound versus the euro.
Bellway said some of its suppliers were likely to raise their prices due to the higher pound.
Evans-Pritchard also said that import data had become unreliable given massive swings in prices due to the commodity downturn and a divergence between prices and trading volumes.
Dairy farmers have endured three years of falling milk prices due to pressure from supermarkets to lower prices and falling overseas sales of British milk.
Perhaps most salient – especially in combination with the interconnector being down – gas was at record high prices due to a booming export market.
"We were able to look at the credit markets and see the dislocation of prices due to credit and distressed sellers — not distressed debt," Mr. Duffy said.
But a one-off drop in prices due to cheaper imports from Asia, lower oil prices or deregulation in telecommunications is not the same as "deflation".
And even a small shock - a rise in food prices due to a few weeks of poor weather - might be enough to push inflation above 3 per cent.
Tumbling commodity prices, due to slackening demand from China and India, mean that Indonesia's traditional sources of revenue, from coal, oil, gas and more, are under pressure.
Andrew Lees of UBS foresees a surge in energy prices, due to the high cost of extraction.So if you want "the answer" the book won't help.
Nicla di Palma, analyst at Brewin Dolphin, said: "We do not think Next will be able to increase its selling prices due to the competitive situation in the UK clothing market and the weakness of the UK consumer.
