Unilever sees higher prices in 2023, moderating in second half
Firsthalf net material inflation seen at 1.5 bln euros

LONDON, Feb 9 Reuters Unilever Plc said on Thursday it would continue to raise prices for its detergents, soaps and packaged food to offset rising input costs, and ease up those hikes in the second half of 2023.

The Londonbased company, which makes products like Fairy washingup liquid, Dove soaps, savoury food spread Marmite and Ben Jerry39;s ice cream, expects cost inflation to continue in 2023, forecasting net material inflation in the first half of around 1.5 billion euros 1.6 billion.

The packaged goods industry has hiked up prices over the past year to cope with surging costs of everything from cocoa and sunflower oil to wheat. The industry had already been battling COVIDera supply chain issues and raw material expenses when Russia invaded Ukraine, further boosting prices of energy and other commodities.

When it comes to coverage of the inflation that we39;ve seen, we39;re currently only sitting at about 75 of the total cost inflation covered, said finance chief Graeme Pitkethly. That needs to go above 100 to repair our gross margin.

Price increases would continue in the second half but it will be a lower rates of increases…we are probably past peak inflation, but not yet past peak pricing, Pitkethly said.

Underlying price growth for the fourth quarter was a record 13.3 while underlying volumes fell 3.6.

Some companies in Europe have…