Unilever, maker of PG Tips and Cornetto, warns of rising prices


    The company behind brands such as PG Tips, Cornetto and Dove said it would raise prices to cope. "Higher Levels" of Cost Inflation which is expected to continue next year.Consumer goods giant Unilever says it has raised prices.Unilever said this would continue in its global operations and within individual product divisions.

    The company reported a 2.5% increase in sales for the third quarter through September 30.The growth was supported by a 4.1% price increase, while the volume of goods sold fell 1.5%.On Wednesday, the National Bureau of Statistics said the UK Consumer Price Index (CPI) of inflation slowed to 3.1 percent in the year to September.

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    It is unclear how the Unilever price hike will affect consumers. The company sells to businesses such as retail stores, supermarkets and wholesalers, which may or may not pass higher costs to shoppers.But AJ Bell financial analyst Danni Hewson said Unilever was dealing with "Balanced action that won't increase prices so much that

    the company's products are no longer competitive.It's a true test of the company's brand strength,” she said. Will we really stick to branded soaps at a much higher price when there are unbranded alternatives sitting on the shelves that are much cheaper?If consumers decide to choose a cheaper alternative enough It will become a big problem for Unilever.