15 June 2011 | Lindsay Clark
White goods manufacturer Electrolux plans to increase
wholesale prices to retailers in Europe by between 5 and 7 per cent to offset increases
in raw material and transport costs.
The firm said in a statement that over the past 18 months, the average
prices for some of its most important raw materials have increased by between
40 and 90 per cent, while the cost of moving goods had also gone up
Although unable to specify which raw materials contributed the most to
rises, a company spokesman said plastics, steel and oil were the firm’s
“The trend is now stabilising, but there are no signs of a broad-based
major downward correction towards the prior cost levels. During the same period
of time, Electrolux has experienced increased price pressure in the market,
which accelerated in the first part of 2011,” the firm said in a statement. The
price rises form “part of the work to achieve sustainable profitability”.
The fridge and washing machine maker told its European customers that
for appliances, an increase of between 5 and 7 per cent would be effective as
of 1 October 2011. The manufacturer was still in discussion with retailers over
the price rises, the spokesman added.
Last week, the Office forNational Statistics published data showing that
manufacturer input prices increased by 15.7 per cent in the year to May 2011.
Oil alone increase by 37 per cent during the same period.