IKEA has increased the average price of products in its Irish stores by over 11% due to rising supply chain costs - more than the global average increase of 9%.
A spokesperson for the flatpack furniture giant said that since the start of the pandemic, the company has managed to absorb the "significant cost increases" experienced across the supply chain while keeping prices as low and stable as it possibly can.
"Now, like many other retailers, we have had to raise our prices to mitigate the impact on our business," an IKEA spokesperson said.
"As prices are influenced not only by the raw material prices but also by transportation, logistical costs and local market conditions, price adjustments differ from country to country", the spokesperson stated.
"Whilst individual price increases vary, the average increase is 11.2% in Ireland, in line with the global average of 9%," the spokesperson added.
In a statement, IKEA said it continues to face significant global transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future.
Disruptions are expected far into 2022, it said, adding that the biggest cost increases due to transport and purchase prices are being felt most in North America and Europe.
"Unfortunately, now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers," the company said.
"We are taking this difficult step right now to ensure we can live up to our purpose to create a better everyday life for the many people, and to safeguard our competitiveness and the resilience of our company," it stated.
"Affordability will always be a cornerstone for us," it added.
Some retailers have been increasing prices in response to the Covid pandemic and supply chain issues, which have seen shipping and raw material costs rise significantly.
Inflation is now running at 5.3%, the latest figures from the CSO showed earlier this month. This marked its highest level since June 2001.
Reporting by Glenda Sheridan
