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IKEA hikes UK prices as sterling slump drives inflation

Published 16/10/2017, 11:07
© Reuters. FILE PHOTO: A shopper walks past a sign outside an IKEA store in Wembley, north London

STOCKHOLM (Reuters) - Furniture retailer IKEA Group has raised prices in Britain to compensate for a slump in sterling after the country's decision to leave the European Union, which has pushed up import costs.

An IKEA spokeswoman said prices had been increased by 3 percent. IKEA imports many of the products it sell in Britain, meaning a fall in the pound raises costs for its business there.

The Swedish group had sales of around 34 billion euros (£30.1 billion) in its fiscal year through August.

Sales data for IKEA's British business for that financial year has yet to be published. The unit had sales of 1.72 billion pounds in the previous financial year.

© Reuters. FILE PHOTO: A shopper walks past a sign outside an IKEA store in Wembley, north London

Sterling's slide since the Brexit vote last year saw British inflation hit its joint highest level in more than five years in August. September data is due on Tuesday with a further rise in the annualised consumer price index expected.

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