Published On: Fri, Jul 30th, 2021

World’s Largest Food Company Will Raise Prices Over Inflation

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Nestlé, the world’s largest food and beverage firm, announced this week that it would increase prices on goods due to inflation. Last month, consumer prices increased 5.4 percent in June from a year earlier, the biggest monthly gain since 2008. Nestlé CEO Mark Schneider told reporters Thursday that “what we’ve seen this year is some kind of a turning point, where after several years of low inflation, all of a sudden it accelerated very strongly.” Although Schneider echoed the Federal Reserve in saying he believes the inflation will be “transitory,” the firm will have to raise prices by about 2 percent to offset cost increases of 4 percent. Nestle hiked prices by 1.3 percent during the first half of 2021. “We consider this as transitory,” he added. “For 2022 and beyond, we expect to return to steady and moderate increases in our underlying trading operating profit margin.” In elaborating, CFO Francois-Xavier Roger …

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