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Glasgow Live
Glasgow Live
National
Sophie Buchan

KitKat, Durex and Dettol warn of price increase amid rising inflation rates

The cost of living is rising with many noticing that the likes of their energy and food shopping bills are going up and up and up - and it just doesn't seem to stop.

This is due to a variety of factors with many brands having to tell its customers they need to increase the cost of their products to make up for the extra costs the company themselves are facing.

Another company to announce this is KitKat and Nescafe-maker, Nestle, who have warned this will also be happening to them due to their growing production cost.

Mark Schneider, boss of the food group, said it was a "safe assumption" that prices would rise this year and that the company was not "exempt of inflation".

Reckitt Benckiser, the consumer goods company for Durex and Dettol, revealed that their costs rose by 11% during 2021 and said that they would also have to hike up their prices.

However Laxman Narasimhan, its chief executive, has assured people that this does not mean prices will be hikes by the same percentages they have a way to "mitigate and manage pricing"

They added that they hope "to absorb most of the increases", reports the BBC.

The BBC also reported that Nestle have had to increase their prices by 3.1 per cent in the fourth quarter of its financial to offset rising operating costs.

Mr Schneider added that it was a "safe assumption" that their "input cost increases for 2022 will be higher than 2021, that is something that we have to reflect in our pricing."

"There is almost no place in the company that is exempt of inflation now...some of these things you can hedge against, some not."

The consumer goods company for Dettol revealed their costs rose by 11% during 2021 and now have to increase their costs. (Dettol.)

Danni Hewson, financial analyst at AJ Bell, said big brand owners were facing an "important test given pressures on the cost of living".

"Consumers may not be able to keep stomaching price increases and so there is a risk they buy less of the popular and more expensive brands and/or trade down to cheaper options," she added.

"The big brand companies therefore face the risk of having to cut their prices just to maintain sales volumes."

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