Tuesday, June 18, 2024

IKEA plans to raise prices by 9% by 2022 to counter inflationary pressures


Swedish furniture group “Ikea” announced yesterday, Thursday, that it will increase its prices by an average of 9% by 2022, with a shortage of basic goods and higher transportation costs worldwide.

“Unfortunately, for the first time since high costs began to hit the global economy, we need to charge our customers some cost increases,” said Inga Group, a holding company that oversees 90% of IKEA stores worldwide.

The Netherlands-based company added: “Like many businesses, IKEA continues to face significant restrictions on transportation and essential commodities, which are expected to increase costs without expecting to be discontinued in the future. Rise for most of 2022“.

Inga said the key cost increase associated with transportation and delivery prices is “particularly felt in North America and Europe”.

The holding company explained that “the growth rate (of expenses) of the INKA Group will be 9% globally and prices will vary according to the countries and product group that reflect local inflationary pressures.”

So far, the IKEA Group has absorbed significant costs as a result of the large logistics tensions arising from the recovery of demand at the end of the first phase of the epidemic.

The announcement comes in the wake of a sharp acceleration in global inflation, deep disruptions in supply chains and a shortage of essential commodities for international trade.

This phenomenon was accompanied by an increase in the prices of basic commodities (wood, copper and steel) and energy (fuel, gas and electricity).

In the euro area, inflation rose to 4.9% year-on-year in November-November, a record since the adoption of the single currency in 1999. In the United States, prices rose 6.8% last month compared to November 2020, the highest level in 39 years.

See also  Gulf stock markets are recovering from rising oil prices and rising global markets

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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