Unilever warns price hikes not yet past their peak

The consumer goods giant said that while inflation is set to ease back towards the end of 2023, price growth will ‘remain high’ in the first half.

Unilever has said price hikes are not likely to peak until at least the second half of 2023 (Chris Radburn/PA) (PA Archive)

Marmite to Ben & Jerry’s ice-cream maker Unilever has warned price hikes are not likely to peak until at least the second half of 2023, and said cost pressures would hold back profitability over the year ahead.

The consumer goods giant said while inflation is set to ease back towards the end of 2023, price growth will “remain high” in the first half as it still looks to offset an extra 1.5 billion euros (£1.3 billion) of costs over the year.

The group reported annual underlying operating profits edging up 0.5% to 9.7 billion euros (£8.6 billion) in 2022, while it saw sales lift 9% as it hiked prices in the face of soaring costs.