IKEA price hike wave hits Hungarian stores – Daily News Hungary

IKEA also felt the need to respond to macroeconomic changes triggered by the pandemic. The Swedish furniture company, famous for its stylish yet affordable products, has announced price increases in many countries, including Hungary.

The 2020 outbreak of the coronavirus pandemic undoubtedly had many immediate effects. The location of the first virus hotspots and China’s stricter-than-average measures introduced at the start of 2020 led to the closure of many factories, creating shortages of many products in several industries around the world.

These processes first impacted the market for electronic devices. The virus, which has spread to almost every country in the world to date, has caused a major disruption in the supply chain and production of raw materials, resulting in global shortages of products, while the request remained the same.

It is the macroeconomic processes that are causing inflation to reach dizzying levels, unprecedented in the last 30 to 40 years.

Read also: Prices soar, but inflation continues to rise in Hungary in 2022?

István Madár, one of Portfolio’s leading analysts, said just two months ago that “[a] a dynamic price increase has begun, which can be attributed not only to rising raw material and energy costs, but also to wage and demand developments.”

“If you look at the price of lumber, there are places where it’s seen a 300% price increase,” said Keith Riddle, vice president of sales and marketing for Velux. Penzcentrum.

Recently, IKEA announced a price increase in the UK, after establishing stricter rules for its employees regarding vaccinations.

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Hungarian Penzcentrum decided to inquire about the situation regarding the Hungarian stores to which IKEA responded in essentially the same way as to euro news and Business Intern.

“Since the start of the pandemic, IKEA has managed to absorb the significant cost increases experienced throughout the supply chain while keeping prices as low and stable as possible. Rising costs have affected the global economy and, like many retailers, we have had to raise our prices. »

While on average the price increase in the UK is expected to be around 9%, the Hungarian division said it does not have exact figures, but the company is trying to reflect on each country’s situation in relation to inflation and raw material costs. as supply chain efficiency.

According to Penzcentrum, the company also added that many of its products remain unchanged, but the price increase will potentially affect most of its portfolio.

Read alsoFighting inflation is top priority, says Hungarian central bank governor

Source: Penzcentrum.hu, euronews.com, businessinsider.com

Laura T. Thrasher