Unilever increases prices by more than 11 per cent due to inflation

A consumer goods giant has introduced massive price hikes this year, meaning Aussies are paying more for their favourite products.

Consumer goods giant Unilever has combated soaring inflation rates by passing its costs to customers after its prices were hiked by as much as 11.2 per cent from April to June.

The London-based company, which is responsible for producing Ben & Jerry‘s ice cream, Marmite, Dove skincare and Lynx products, recorded a sales growth of 8.1 per cent for the first half of 2022.

Unilever attributed the rise to its “strong pricing” to mitigate cost inflation, though it conceded these price increases had a “negative impact” on product volume.

Ben and Jerry's ice cream is one of the Unilever products that went up by as much as 11.2 per cent. Picture: Kevin Dietsch / Getty Images / AFP

Unilever chief executive Alan Jope said the company would continue to navigate the challenges of inflation in the second half of the year.

“Unilever has delivered a first-half performance which builds on our momentum of 2021 despite the challenges of high inflation and slower global growth,” he said.

“The challenges of inflation persist and the global macroeconomic outlook is uncertain, but we remain intensely focused on operational excellence and delivery in 2022 and beyond.”

The price of basic goods, amenities and essentials has skyrocketed worldwide amid Russia‘s war in Ukraine and the continued impacts of Covid.

The majority of companies have passed these costs onto the customer.

Unilever recorded an 8.1 per cent growth in sales after passing costs onto its customers.

Mr Jope told a Unilever earnings call it would take a “little time for spot price falls”, with more inflation hurdles anticipated.

“We are expecting to hit peak year-on-year inflation in the second half, and therefore, we will continue to price responsibly while managing consumer demand elasticity and competitive dynamics,” he said.

But he made it clear that pricing was a fluid situation that would be adjusted accordingly to reflect the economy.

“We have already reversed a couple of prices in sales where we feel that competition are not following or we’ve moved too far,” Mr Jope said.

“Blunt answer is, prices will go up and down in the second half, and I do expect the volume impact to be slightly more substantial in the second half than in the first half.”

Unilever reported $43.2bn in revenue for the first half of 2022, while it now expected its underlying sales growth to exceed its previously forecasted top-end range of 4.5 per cent to 6.5 per cent.

Originally published as Unilever increases prices by more than 11 per cent due to inflation