May 26, 2022
Nestl warns of rising prices (Photo: Getty Images)

KitKat and Nescafe maker Nestle have raised the price of their products and warned of further increases.

The Swiss food group said it had increased prices by 3.1% in the last three months of 2021, compared to the same period a year earlier, to cover rising production costs.

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He warned that buyers should expect even higher prices this year due to rising production costs.

Mark Schneider, the firm’s chief executive, said: “It is a safe assumption that our input costs for 2022 will increase beyond 2021, which is something we need to reflect on our prices.

“There is almost no place in the company that is now exempt from inflation.”

The company, which also makes Cheerios and Felix cat food, did not specify specific products affected by the price increase.

Nestl explained that it needs to ensure “responsible pricing” to meet the effects of rising commodity, labor, utility and freight costs in its supply chain.

Durex and Dettol’s grocery company Reckitt Benckiser also revealed that its prices increased by 11% during 2021 and said that it will increase prices.

However, its chief executive Lakshman Narasimhan assured the people that this did not mean that prices would go up, as the company had “ways to reduce and manage prices”.

Jeff Carr, chief financial officer, said the firm’s costs have risen “across the board”, from crude oil and plastics to shipping and wages, but the company has absorbed “a significant portion” of higher operating costs through “performance”. Is doing “and” buying better “.

“We are not delivering it to consumers. We are setting some prices on consumers but we reduce it through our programs … to absorb these cost increases,” he said.

Inflation hits 30-year high

Rising prices come amid a rising cost of living for those struggling with rising energy bills.

The latest figures from the Office for National Statistics show that Consumer Price Index (CPI) inflation was 5.5% in the UK last month, the highest level in 30 years.

The Office for National Statistics (ONS) said that the Consumer Price Index (CPI) inflation rose to 5.4% in December – the highest level since March 1992, when it was 7.1%.

The new rate of 5.5% is in line with the forecasts of most economists, but it is still well above the Bank of England’s (BoE) 2% inflation target.

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