Ikea increases prices by 50%, citing rising supply chain cost

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Dec. 31 (UPI) — Citing supply chain issues, Ikea raised the price of its flat-pack furniture by 50% after Christmas.

The retailer said that it was not able to continue absorbing the cost of raw materials, transport and logistics.

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Ingka Holding BV, the largest owner and operator of Ikea stores, announced on Thursday that it was planning to raise prices by 9% on average.

The company said that cost increases are “felt most in North America and Europe.”

Earlier this year, Ikea warned that prices would rise. Bottlenecks in shipping materials from Asia to Europe caused significant delays.

Increased furniture prices come with broader concerns about the rising cost of living.

Britain’s inflation hit a 10-year-high of 5.1% in November. Energy bills and rising taxes may result in a “year of the squeeze” in 2022.

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