Unilever Hikes Prices Fastest In Nearly a Decade Amid Inflationary Pressure: Report Unilever said that in the third quarter it increased prices by 4.1 percent to "offset rising commodity and other input costs."

By The Epoch Times

This story originally appeared on The Epoch Times

Unilever announced on Thursday that it has hiked up prices to cope with rising supply chain costs, and warned that inflationary pressures would linger for at least a further year, as economies recover from the pandemic.

The British multinational consumer goods company that makes Dove soap and Knorr soup said that in the third quarter it increased prices by 4.1 percent to "offset rising commodity and other input costs."

The move "is a step up from the first half of the year," Unilever said in a statement, noting that it is taking pricing action to offset rising commodity and other input costs.

According to Bloomberg, the price hike is the fastest in nine years. Chief Executive Officer Alan Jope told Bloomberg Television in an interview that he predicts at least another 12 months of inflationary pressure.

"Peak inflation will be in the first half of 2022, and it will moderate as we move towards the second half," Jope said, adding that the company will introduce productivity measures to offset higher prices.

The company's finance chief Graeme Pitkethly told reporters on a media call that Unilever expects inflation could be higher in 2022 than this year, adding it was likely to peak in the first half of next year and level out thereafter.

The maker of Ben & Jerry's ice cream said underlying sales rose 2.5 percent in the three months ended Sept. 30, above the 2.2 percent forecast by analysts in a company-supplied consensus.

Growth was helped by demand in the United States, India, China, and Turkey, while the 4.1 percent increase in prices more than offset a 1.5 percent decline in volumes.

The price hike was up sharply from the 1.6 percent increase in the second quarter and Pitkethly warned there would be another step up in the fourth quarter that would continue into the first half of next year.

Separately, rival Nestlé said on Wednesday said that it had raised prices 1.6 percent in the nine months to September, while Procter & Gamble announced that it would also raise prices further.

Consumer goods companies face soaring prices of raw materials such as energy, edible oils, and packaging, as well as higher transport costs as economies recover from the CCP (Chinese Communist Party) virus pandemic.

Inflation in the consumer goods industry has been running in the high-teens, though Unilever said it was seeing a lower impact because of its negotiating power and hedging.

Pitkethly told reporters that roughly 20 billion euros ($23 billion) worth of annual raw materials and packaging costs and 3 billion euros ($3.4 billion) worth of annual logistics costs have been affected by inflation, Bloomberg reported.

"We continue to responsibly take pricing and that's in relation to the very high levels of inflation we're seeing," Pitkethly said.

Reuters contributed to this report.

By Isabel Van Brugen

Isabel van Brugen is an award-winning journalist and currently a news reporter at The Epoch Times. She holds a master's in newspaper journalism from City, University of London.

Wavy Line

The Epoch Times is the fastest-growing independent news media in America. We are nonpartisan and dedicated to truthful reporting.

We are free from the influence of any government, corporation, or political party—this is what makes us different from other media organizations. Our goal is to bring our readers accurate information so they can form their own opinions about the most significant topics of our time.

We don’t follow the unhealthy trend of agenda-driven journalism prevalent in today’s media environment. Instead, we use our principles of Truth and Tradition as our guiding light. We highlight in our reporting the best of humanity, the valuable lessons of history, and traditions that are beneficial for society.

The Epoch Times was founded in the United States in the year 2000 in response to communist repression and censorship in China. Our founders, Chinese-Americans who themselves had fled communism, sought to create an independent media to bring the world uncensored and truthful information.

The Epoch Times has received numerous awards for our reporting and design, including from the New York Press Association, the Society of Professional Journalists, and the Society for News Design.

The Epoch Times’ media network currently covers 21 languages and 33 countries.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Business News

More Americans Are Retiring Abroad, Without a Massive Nest Egg — Here's How They Made the Leap

About 450,000 people received their social security benefits outside the U.S. at the end of 2021, up from 307,000 in 2008, according to the Social Security Administration.

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.


Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Business News

Woman Ties the Knot at White Castle Almost 30 Years After the Chain Gave Her Free Food as a Homeless Teen

Jamie West was just 12 years old when she ran away from the foster care system.