Sunday, February 5

Global inflation also impacted Ikea prices

It is estimated that Ikea sells a piece of furniture somewhere in the world every five seconds, a great achievement considering it was launched in 1979.

“Unfortunately, for the first time since cost increases have started to affect the global economy, we will have to pass some increases on to our customers,” he said Ingka Group, the holding company that controls 367 of the 422 Ikea stores, that is, more than 90% of its stores.

According to Ingka, the main increases in transportation costs and supply prices “are felt primarily in North America and Europe.”

“Ingka Group’s average price increase will be 9% worldwide, with variations by group country and range, reflecting local inflationary pressures,” said the Nordic brand, which last month posted a 17% drop in annual profits, attributed to the sharp rise in the prices of transport and raw materials.

Due to these logistical tensions, exacerbated by the recovery in demand after the first phase of the pandemic, in 2021 the Ikea group absorbed costs of 250 million euros (283 million dollars).

The announcement of the Swedish company comes in a context of sharp acceleration in global inflation, accompanied by a rebound in the prices of raw materials (wood, copper, steel) and energy (gasoline, gas, electricity).

In the euro zone, inflation reached 4.9% in a year in November, a record since the introduction of the single currency in 1999. Meanwhile, in the United States, the increase in prices was 6.8% on last month compared to November 2020, its highest level in 39 years.