Household goods maker Unilever has hiked prices again, warning that inflation is set to rise significantly later this year.
The maker of Hellman’s mayonnaise and Dove soap has warned of further price hikes for its products as it seeks to pass on rising input costs to consumers despite an 8% rise in product prices. year-on-year in the last quarter of 2021. The company again raised prices by 8.3% in the first three months of the year as the conflict in Ukraine is expected to drive up commodity inflation of 2.7 billion euros in the second half.
The latest figures are a substantial increase from the €1.5 billion forecast at the start of the first quarter, and on top of cost inflation of around €2.1 billion already materializing in first half of 2022 in the form of grains, oils and other agricultural raw materials are experiencing price increases. “While we are acutely aware of the pressure on consumers, we believe that raising prices in response to this extreme pressure on raw material costs is the right thing to do,” said Unilver CEO , Alan Joe.
Unilever’s homecare category saw some of the biggest price increases, with products such as Cif cleaners and Sunlight dish soap jumping 12.5%, leading to a drop in sales volumes of 2.9%, while beauty and personal care products increased by 7.4%. The substantial price increases have forced some consumers to tighten their grip on their wallets and return to cheaper own-brand product options, which became evident when Unilever announced an overall 1% drop in sales volumes.
In order not to pass the entire inflation on to consumers, Unilever has also decided to substitute some ingredients, such as oils, for cheaper alternatives, as cooking oils have been particularly affected by the crisis in Ukraine. .
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