Consumer goods costing more because of supply chain strain, inflation

The consumer goods giant said its prices are up nearly 4%.

October 22, 2021, 9:14 AM

With no signs of the consumer product price surge slowing down, some companies have addressed the cost increase customers could see into next year.

Many of the problems that have contributed to the rising costs are directly linked to the supply chain backlog.

PHOTO: Stock photo of a person for food with their phone.
Stock photo of a person for food with their phone.
STOCK PHOTO/Getty Images

Unilever, the parent company of such brands as Dove soap and Ben & Jerry's ice cream, announced it has already raised prices by nearly 4% because all of its products now cost more to make.

"We are operating in a global environment that is far from business as usual," Unilever chief Alan Jope said Thursday on a quarterly earnings call. "We continue to see inflation with the cost of many commodities up sharply versus a year ago."

That also includes agricultural commodities, petrochemical-derived materials, paper and board, transport and logistics, and energy and labor.

"Supply chain disruption seems to be in the news daily, and we expect to be managing this for the balance of this year and into at least the first half of next year," Jope said.

Oftentimes, consumers do not notice price hikes, the cost of which are eaten by retailers, wholesalers and supermarkets. But according to Unilever finance chief Graeme Pitkethly, this time is different.

“Consumer-facing price is the last lever we normally use to manage inflation, but we have landed list price increases around the world," Pitkethly said on the same earnings call.

The consumer goods giant joined a growing list of those who are passing the cost on to customers.

Procter a& Gamble, makers of Pampers diapers, Tide detergent and Gillette razors, said its prices are also up on certain products to combat costs.

Moody's Analytics chief economist Mark Zandi reported that households with an annual income of around $70,000 have been forced to spend $175 more per month at the grocery store due to the current inflation rate.

ABC News' Aaron Katersky contributed to this report.

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