The fall in the value of the pound against sterling is likely, if sustained, to feed through to higher import prices for goods from Britain, although forecasters are divided on what affect this will have on the overall rate of inflation

Eason & Son, which imports hundreds of thousands of British magazines each week for sale in the Republic, said yesterday it had not so far increased its prices, but was likely to do so later this month.

"Currently, the prices have been set for three months or more," said Mr Kevin Brabazon, a director of the firm.

He said Easons' system was to buy the magazines several months in advance at a fixed rate, then stick with that, regardless of currency fluctuations, until the next purchase.

Whereas in the past this had worked against customers, magazine buyers were now gaining significantly from the buy-ahead system.

"Obviously, there is a change coming, but it will be in the normal run of events, probably later this month," Mr Brabazon said. "The fluctuation will have to be taken into account." Marks & Spencer said it had no immediate plans to mark up its Irish prices. Currently, clothes and textiles are still marked in the sterling price, with customers in the Republic now effectively gaining a reduction of more than 10 per cent. Food, however, is marked up to some extent

"We take a long term view on our business in southern Ireland, including the currency rate. Therefore short-term changes in the rate is not something that we would necessarily concern ourselves with," said Mr Geoff Rowbotham, the company's regional manager.