PRICE OF FAMILIES’ TOP FOODS TO SOAR

Unilever warning

THE firm behind some of our favourite food and household goods has warned shoppers it will unleash more price hikes while inflation will keep soaring next year.

Unilever, which makes everything from Marmite and Ben & Jerry’s ice cream to PG Tips tea and Dove soap, said it would take “appropriate pricing action” to protect profits.

Bosses confirmed they had already raised prices 4% globally and by 2.1% in Europe during the three months to September.

That helped counter rising costs and a fall in sales for the firm, which also counts Hellmann’s mayonnaise and Domestos cleaner in its huge range of products.

Alan Jope, chief executive of the multinational, said: “We have and will continue to respond across our categories and markets, taking appropriate pricing action and implementing a range of productivity measures to offset

increased costs.” And chief finance officer Graeme Pitkethly warned he expected no let-up in pricing pressures.

He added: “We expect inflation could be higher next year than this year.”

Mr Pitkethly also said the business was battling “logistics challenges” in Europe to ensure “on-shelf availability” of products.

Danni Hewson, analyst at City firm AJ Bell, said the inflation warnings from such a huge company were a cause for concern.

“Given the breadth of costs Unilever is exposed to and the fact that dealing with input costs is bread and butter for a consumer goods company, a warning that inflation will be higher in 2022 carries weight,” she said.

But she added price hikes may end up hurting Unilever brands as hard-up consumers seek cheaper alternatives.

“If enough decide they can put up with a cheaper alternative it would become a big problem,” she said.

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Marmite factory in Burton YEAST OF OUR WORRIES BASICS Marmite, Hellmann’s Ben & Jerry’s and PG Tips