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Ikea Bows to Inflation as Furniture Maker Raises Prices

  • Supply-chain challenges expected to continue through 2023
  • Low-cost segment outperforms amid cost-of-living crisis
Ikea absorbed more than a billion euros ($974,200) of costs over the past two fiscal years rather than passing them on.

Ikea absorbed more than a billion euros ($974,200) of costs over the past two fiscal years rather than passing them on.

Photographer: Koral Carballo/Bloomberg
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Ikea, the flat-pack furniture giant, said it had no choice but to push up prices earlier this year as inflation soared, ending a policy of stability over the past few years.

“It hurts my soul that we had to raise prices,” Chief Executive Officer Jon Abrahamsson Ring of the Inter Ikea Group, the worldwide franchiser for the brand, said in an interview. “Unfortunately, we can’t ignore surging raw materials and transport costs.”