Unilever warns of even higher inflation next year

It makes everything from Dove soap to Ben & Jerry's ice cream.

And all its products might soon be going up in price.

On Thursday (October 21) household goods giant Unilever warned that it sees even higher inflation ahead.

The firm says prices rises will probably accelerate next year due to surging costs for energy, edible oils and packaging.

Transport is also getting steadily more expensive.

Earlier this week arch-rival Nestle said it had hiked prices to cope with rising costs.

It's a similar story at Unilever.

Its sales rose faster than expected in the three months to the end of September.

Though the volume of goods sold actually fell, prices rose more than enough to compensate.

But analysts say Unilever may struggle to pass on all the coming rise in costs.

It makes about 60% of its sales in emerging markets, where inflation pressures are fiercest.

For all that, the firm says it's sticking to profit margin targets made earlier in the year, defying analyst fears of a cut.

Unilever shares rose 1% in early trade Thursday.

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