The head of Unilever (UL), that controls well-known brands such as Ben & Jerry’s, Dove, Hellmann’s and Vaseline, speaking at the World Economic Forum in Davos, Switzerland, said that while he believes inflation might have peaked, prices have not. According to Unilever CEO Alan Jope prices on consumer goods are likely to move even higher in the coming months. Last October, Unilever published its third-quarter results for 2022, with the firm reporting price growth of 12.5%.
Jope touched upon the international dimension of his business and how the experience of operating in a range of markets was steering it through the current climate. “But we’re used to high levels of inflation from doing business in places like Argentina, or Turkey, or parts of Southeast Asia,” he added.
Why it matters
Food inflation has been one of the most concerning elements of rising prices. The pandemic, supply chain problems and Russia’s invasion of Ukraine have all contributed to the issue, which saw the price of home groceries increase 11-12% last year, according to the U.S. Department of Agriculture. The national average price for a dozen eggs hit $3.59 in November, up from $1.72 a year earlier, according to the latest government data.