The ongoing supply chain disruptions and rising transportation prices are the reasons pushed forward by the furniture giant IKEA for raising its prices on a global scale.
Just like the United Nations warned late in 2021, furniture prices are going up by around 10%, which also includes famous brands like IKEA.
Ingka Group, the owner of the greatest majority of IKEA stores, announced an average price growth of 9% on a global scale. Local prices in various countries will depend upon the variations on the local inflation rate and potential problems with commodities and the supply chain.
For example, in UK stores, IKEA announced a 10% increase. However, as The Guardian states, certain furniture pieces cost as much as 50% more after this price hoisting. However, the average increase is not the same for all furniture pieces.
For instance, IKEA’s Malm desk is over 50% pricier. Brands explain these drastic changes with the shipping issues and jacked up costs brought on by the COVID-19 pandemic.
According to IKEA’s official statement, the company could no longer absorb these rising costs caused by logistic and transportation difficulties. This is something the brand claims to have done since the beginning of the pandemic to keep the prices as low as possible for customers.
Although IKEA emphasizes that affordability remains at the heart of its business, in 2022 people will most likely be turning to DIY projects to balance out the growing pressure on their budget.
Just in December 2021, the inflation rate in the US went up to 7%, raising living expenses and worsening the worries about financial instability in 2022.