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Ikea to raise prices as supply chain problems bite

Ikea is to raise prices as the disruption to global supply chains is expected to last into next year. On Wednesday, Ikea reported a drop in full-year profit due to higher transport and raw material costs.

In the coming year it will pass some of these costs on to its outlets, which will be free to then charge customers more, the Reuters news agency reported. Businesses have been struggling with supply chain problems as economies recover from the Covid pandemic.

The Swedish furniture giant saw record demand during the pandemic as people spent more time at home. However, pre-tax profit at Ikea Group, which makes most of its money selling goods to its franchisees, fell 16% in the year to September to 1.7bn Euros (1.4bn Pounds).

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