As consumers continue to deal with the cost-of-living crisis, further price hikes seem to be on the horizon.
Unilever has signalled there will be further price rises ahead as it forecast that its own input costs will rise as much as £3billion this year.
Alan Jope, CEO of the consumer goods group, warned that prices of several products across the company’s consumer range are going up, as a result of “dramatic increases” in the cost of everything from shipping to ingredients.
Here's everything you need to know about the price hike to Unilever products - including which products will face a rise in price and why.
What Unilever products will increase in price?
Unilever is the company behind food items such as Marmite, Magnum, Ben & Jerry's ice cream and Hellmann's mayonnaise, as well as household products like Dove, Domestos bleach and Vaseline.
The consumer giant - which already raised prices last year - has confirmed that the cost of several of its popular goods will go up, but that it would vary from country to country.
Unilever said: "We don't want to put prices up but we're seeing the highest inflation we've seen in a decade. There will be price increases on some products and in some markets but it will not be uniform across the world."
The company said that it expects "very high" cost inflation of £1.7bn in the first half of 2022 but added that it also forecasts strong growth in sales this year as it raises prices despite sharp decline in its profit margins.
Why is Unilever hiking the price of its products?
Unilever said that after significant supply chain cost inflation last year, the company is expecting a further increase in the price of raw materials, freight and packaging in 2022.
This will ultimately result in consumers paying more for its products in supermarkets and other retail outlets.
Mr Jope explained: "The major challenge of 2021 has been the dramatic rise of input costs. We responded with pricing actions. In 2022 we will manage a significant input cost inflation cycle."
This price hike comes just after the consumer giant reported its strongest sales growth in nine years, taking around £50billion in 2021.
With consumers facing rising energy bills, petrol prices and borrowing costs, this indefinite increase in price of everyday items could see some customers switch to cheaper alternatives, according to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
However, Streeter also added: "The strength of brands like Dove and Ben and Jerry’s should provide some resilience."
