The prices of IKEA’s products are slated to rise by an average of 9% worldwide during 2022 in response to production chain costs. The planned price markups are in response to cost increases across Ikea’s production chain, reports EUWID.

The new price increase comes as a response of the Ingka Group – the company that owns most of IKEA’s stores. According to Ingka, the cost increases in logistics and upstream products have been most significant in North America and Europe.

Although the company tried to avoid it, with no short-term relief in sight, some of these costs, unfortunately, will be passed onto IKEA’s customers. But if purchasing prices decline again, Ingka Group has said it intends to adjust its prices downwards for customers again.

Despite the announcement of new price increases, Ingka Group is planning to expand the number of low-price products the company offers in the future. The goal is to offer over half of the product range at a low price.

According to Ingka, the company has managed to keep IKEA’s products at a stable price since the outbreak of the pandemic. At the same time, the Inter Ikea Group has taken on additional costs of over $250 million related to supply chain disruptions.

Read more about IKEA’s 2022 price markups within production chain costs at EUWID.

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