IKEA warns of rising prices due to supply chain issues

NEW YORK -- Furniture retailer Ikea is warning of higher prices far into 2022 amid the global supply chain crisis.

The company said its ready-to-assemble home furnishings and other products are getting more expensive because keeping stores and warehouses in stock is getting harder due to higher transport and raw material costs.

"We have and we will put a lot of effort to keep our prices as stable as we possibly can," an Ikea spokesperson said in a statement to ABC News.

Supply chain issues are rippling into newer areas, leaving retailers worried about their shelves and their consumers' shopping carts, especially ahead of the busy holiday season.

For example, Mondelez International -- the maker of Oreo cookies, Toblerone chocolate and Sour Patch Kids -- said Thursday that it plans to hike prices in January 2022 by 6-7%.

The most common problems that are being seen with the supply chain right now are shortages, delays and congestion, said Ananth Iyer is the Susan Bulkeley Butler Chair in Operations Management at Purdue University.

What triggered them are the pandemic and forecasts regarding when recovery would happen, along with the anticipation that there will be a surge in demand, he said.

Many experts predict the crisis will last well into next year, but Iyer said he's optimistic.

"This whole process will sort itself out, sooner rather than later," Iyer said.

Consumers looking to buy products like furniture should consider shopping used and consignment, which are readily available.

The Associated Press contributed to this report.
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