Food prices will rise further, warns Unilever
Post by John Chappels
on 28 April 2011 in Food & Drink
European consumer goods conglomerate Unilever has warned
that food prices will continue rising during the year.
A report by the Evening Standard said the company now
expects commodity prices to rise by between 14 and 16 per cent this year, an
increase on its previous forecast of between 11 and 13 per cent.
Unilever, which manufactures products including Magnum ice
cream and Persil washing powder, released a trading statement for the first
quarter of 2011 this morning. The firm said that the rising price of oil is
continuing to have a considerable impact on the price its raw and packaging
Some of these costs will have to be passed on to consumers,
leading to higher weekly shopping bills, although Unilever says it is not
increasing its prices as fast as its own costs are rising.
Yesterday, the chief executive of UK-based food producer Premier
Foods, home to brands including Hovis and OXO, said speculators were partly to
blame for rising food prices and creating volatility in the market.