Consumer goods companies want to raise prices in view of high costs

Unilever, Coca-Cola, and McDonald’s jointly said Tuesday (July 26) that the impact of global inflation has led to higher costs. This makes products more expensive, which increases the pressure on the household sector.

Some of the world’s largest consumer goods companies have warned of price increases for key goods. Wal-Mart, a U.S. retailer, said food and fuel price inflation are hurting consumer spending.

While inflation in many countries has reached its highest level in decades, Amazon has raised prices for Prime memberships in key European markets, citing inflation and rising operating costs. Unilever warned of an unprecedented cost situation.

Unilever said prices for the company’s products, including Dove soap, Hellman’s mayonnaise and Cif detergent, rose an average of 11.2% year over year in the second quarter and will continue to rise. This increase helped Unilever report higher-than-expected sales. Even though sales volumes fell by 2% as consumers switched to cheaper products.

Coca-Cola itself published a similar trend report. The company’s product prices rose by about 5%, while McDonald’s said it is considering offering more discounted menu options as consumers switch to cheaper alternatives.

Shares of the U.S. retailer fell sharply on Tuesday after Walmart issued its second profit warning in 10 weeks as customers bought fewer unnecessary goods.

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