PG Tips and Cornetto maker Unilever warns prices will rise

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PG Tips and Cornetto maker Unilever warns prices will rise

The company behind brands such as PG Tips, Cornetto and Dove has said it will raise prices to cope with "elevated levels" of cost inflation which it expects to continue next year.

Consumer goods giant Unilever said that it had already lifted its pricing.

Unilever said this would continue across its global operations and within each of its product divisions.

The company reported a 2.5% rise in sales for the third quarter to 30 September.

Growth was supported by a 4.1% increase in prices while the volume of goods sold fell by 1.5%.

On Wednesday, the Office for National Statistics said that the UK consumer prices index (CPI) measure of inflation slowed to 3.1% in the year to September.

However, inflation is expected to accelerate in the coming months due to a rise in energy costs as well as continuing disruption to UK and global supply chains.

Unilever's chief financial officer, Graeme Pitkethly, said: "We expect inflation to be higher next year than this year."