Tuesday, February 27, 2024

Inflation hits Ikea products around the world

Date:

Swedish furniture group Ikea has announced that by 2022 it will have to raise its prices by 9% due to a shortage of basic goods and the high cost of transportation in the world economy.
“Unfortunately, for the first time since high costs began to hit the global economy, we need to charge some cost increases for our customers,” said Inga Group Holdings, which oversees 90% of IKEA stores. The world.
The Netherlands-based company added, “Like many businesses, IKEA continues to face significant restrictions on transportation and essential commodities, increasing costs without expecting it to stop in the future. Unrest is expected 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 rate of increase (in expenditure) of the INKA Group will be 9% globally and prices will vary according to countries and product groups that reflect local inflationary pressures.”
So far, the Ikea Group has absorbed significant costs incurred, especially as a result of major logistics tensions, by recovering 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 high since the adoption of the single currency in 1999. In the United States, prices rose 6.8% last month compared to November 2020. Absence in 39 years.
(AFP)

See also  Crisis in Europe's skies .. 15,700 flights canceled by Investing.com

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

Share post:

Popular

More like this
Related

The Future of Gambling in the UAE: Economic, Legal, and Social Dimensions

The United Arab Emirates (UAE) is on the brink...

Comparing the Best Trading Platforms in the UAE: Features and Benefits

Trading commodities, currency pairs, ETFs, and other investment vehicles...

Evgenia Timofeenko: What does it mean to be an investor in the hotel business?

Investors are always interested in finding effective objects for...

AFC Champions League 2023/24: Last-16 Fixtures, Latest Odds & Preview

The 2023/24 AFC Champions League group stage has been...