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Ikea to hike prices by 9% due to supply chain woes

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Thursday's announcement comes as pandemic-fuelled shortages and shipping challenges ramp up inflation and pinch economies globally, with consumers increasingly feeling the bite. These higher costs — which are mostly being felt in North America and Europe — will now have to be passed on to customers, it added.According to the company, Ikea franchisor Inter Ikea Group absorbed costs amounting to 250 million euros ($283 million) across 2021 due to these logistical tensions, which were exacerbated by the rebound in demand after the first phase of the pandemic.Container transport prices are at record levels following the outbreak of the pandemic, which has disrupted maritime logistics. But a global spike in energy prices, supply chain snags and surging demand has prompted runaway inflation. In the United States, prices rose by 6.8 percent last month compared to November 2020, its highest level in 39 years….



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