IKEA increases prices because of inflation

Swedish furniture giant IKEA will raise prices by an average of 9% due to rising transport and raw material costs due to inflation and delivery problems, Reuters and AFP reported.

The world’s largest furniture chain had previously announced it would rent more ships, buy containers and reroute goods between warehouses to cope with disrupted supply chains, but now said it will have to pass some of the costs on to consumers. , in the expectation that the turbulence will continue.

The owner of 90% of the group’s stores, Ingka Group, noted that prices in its markets will rise by an average of around 9% and that regional fluctuations can occur depending on inflationary pressures and problems with raw materials and supply chains.

“Unfortunately, for the first time since higher prices hit the global economy, we have to pass some of the cost increase on to our customers,” said retail director Tolga Yonchi in a statement.

IKEA continues to struggle with significant transport and raw material difficulties, which is driving up prices, especially in Europe and North America.

The company expects delivery problems to persist for most of 2022, said the Netherlands-based group. “Ingka” owns nearly 400 IKEA stores, unlike another large holding company for the Swedish giant, “Inter Ikea” (Inter Ikea), which owns the brand and the brand’s franchise around the world, BTA said.

In the euro area, inflation reached 4.9% in November, a record high since the euro was introduced in 1999. Eurozone finance ministers announced in October that they expected a decline in 2022., but IKEA’s analysis shows that price volatility and supply problems will persist. In the US, prices rose 6.8 percent last month compared to November 2020 – the highest level in 39 years.

Reference-www.nach-welt.com

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