IKEA defends post-Christmas price hikes

30 December 2021, 13:44

Swedish furniture giant IKEA has defended raising prices in the aftermath of Christmas, blaming supply chain issues and increasing material costs.

The firm confirmed it has increased prices by 10%, above the global 9% average.

But some prices have shot up by as much as 50% for items such as chests of drawers.

The price hikes were first noticed by customers, who expressed outrage online at the sudden changes.

One customer tweeted: "If only I could put up their furniture as fast as they've put up their prices!"

In a tweet, IKEA defended the price hikes, blaming a "significant increase" in materials, transport and logistics.

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An IKEA spokesperson told the Mail: "The effects of Covid-19 continue to evolve and impact industries all over the world.

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"Since the start of the pandemic, Ikea has managed to absorb the significant cost increases experienced across the supply chain while keeping prices as low and stable as we possibly can.

"Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business.

"As prices are influenced not only by the raw material prices but also by transportation, logistical costs and local market conditions, price adjustments differ from country to country."

IKEA's supply chain issues come at the end of a year of huge pressure on UK businesses, as well as businesses worldwide, due to coronavirus and a lack of HGV drivers.