Unilever raises prices by 4% as UK inflation worsens

Unilever warns that inflation could worsen next year as raw material and energy costs push up the prices of its products.
Unilever’s brands include Marmite, Dove, Ben & Jerry’s ice-cream and Hellmann’s mayonnaise.
// Dove and Marmite owner Unilever steps up pricing as energy and distribution costs surge
// The consumer goods group has warned that inflation could worsen next year

Unilever has warned that inflation could worsen next year as raw material and energy costs push up the prices of its food, toiletries and cleaning products.

The maker of brands such as Marmite, Hellmann’s mayonnaise and Dove soap said it had increased prices by 4.1 per cent in the three months to September – the biggest jump since early 2012.

On Thursday, it reported underlying sales growth of 2.5 per cent and turnover of €13.5 billion.


READ MORE: Is it possible for retailers to battle rising inflation?


Its finance chief, Graeme Pitkethly, said the multinational had “stepped up” its pricing in response to the very high levels of inflation, adding: “We expect inflation could be higher next year.”

The company said it had passed on previous falls in commodity costs to customers by cutting its prices.

Retailers could see inflation coming through in their own-brand products, Pitkethly added.

Unilever is among many consumer goods groups to accelerate price rises in the second half of the year.

Its increases were greater than those reported by rival foodmaker Nestlé, which said on Wednesday it had lifted prices 2.1 per cent in the third quarter.

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