Nestle has once again increased its prices due to “unprecedented” cost hikes.
The Swiss food giant reported a 6.5% price increase in the first half of this year.
This week, McDonald’s and Coca-Cola also announced price increases.
Companies are facing greater expenses for fuel, salaries, and ingredients, and consumer prices in the United Kingdom are rising at the quickest rate in four decades.
Nestle, which also manufactures Cheerios and Smarties, had previously raised prices by 3.1% in the final quarter of 2021.
Mark Schneider, chief executive officer, stated that price hikes were implemented “responsibly.”
Nestle’s organic sales, which exclude the effects of currency fluctuations and acquisitions, increased by 8.1% in the first half of the year. The company increased its organic sales growth target for the year to 7 to 8 percent.
The net profit decreased by 11.7 percent to 5.2 billion Swiss francs ($5.4 billion; £4.5 billion) due to one-time expenses, such as higher taxes and write-offs of property and equipment in Russia.
As a result of the invasion of Ukraine in March, Nestle stopped investing in Russia and pulled its popular brands out of the nation. However, basics such as baby formula and medical nutrition supplies are still sold there.
The war in Ukraine has contributed to significant increases in the cost of petrol and food, with UK inflation reaching 9.4 percent in June, the highest level in more than four decades.
As a result of the near-record number of job openings, some companies are increasing compensation to attract and keep employees. However, wage growth is not keeping pace with the rising cost of living.
Wednesday, McDonald’s announced a price increase for its cheeseburger for the first time in almost 14 years, from 99p to £1.19 in the UK.
It followed Coca-announcement Cola’s to Bloomberg that its global prices had climbed by an average of approximately 5 percent.
Amazon also said earlier this week that it will be boosting rates for UK consumers due to greater costs, with the price of its Prime subscription service increasing by £1 per month beginning in September.
