Ikea raises prices by 9 per cent

Ikea is raising its prices worldwide by 9 per cent on average. The Swedish furniture giant does not see any other possibility due to the ongoing impact of the coronavirus pandemic on the supply chain and raw material prices.

Differences on national level

Ikea will implement price increases across “all product ranges and all countries”. This will result in a 9 per cent surcharge on average, but that number would differ significantly depending on the country. Inflation levels, among other things, play a role in this.

Ikea Ireland, for example, is raising its prices by an average of 11 per cent, writes Belgian newspaper De Standaard. The furniture chain’s products will also become more expensive in Belgium, but the article does not state any specific percentages.

Due to the ongoing Covid crisis, a general price increase has become inevitable, according to Ikea. Over the past year, the prices of raw materials and transport have skyrocketed. The furniture chain states that it has absorbed the costs for a long time but that this situation is no longer sustainable.

Ikea’s announcement comes as no surprise. At the end of last year, Martin van Dam, CFO at Ikea, already made it clear that price increases were inevitable.