Swedish multinational giant Ikea has increased prices of its furniture by up to 80% over the last year.

The beloved blue and yellow Swedish store has been forced to raise prices due to the ongoing cost of living crisis.

According to a new study by Retail Week, Price growth on more than a dozen items has outstripped inflation by at least twofold since December last year. 

The budget homeware retailer's Jokkmokk table and four chairs set increased from £99 in 2021 to £179 in October 2022. 

Scarcity of raw materials due to supply chain disruptions and rising wages are leading to high inflation.

Ika has blamed "surging raw material and transport costs" as well as the war in Ukraine and inflation for the rise in prices.

The firm said prices continue to be a "key cornerstone" of its business and it intended to keep them as low as it can and even reduce them when possible.

It said it had recently implemented new offers to support shoppers during the cost of living crisis through its Ikea Family loyalty scheme.

The company has struggled to keep some of its most popular ranges in stock due to supply chain issues across Europe.

A spokesperson said: ‘We are not immune to the macro-economic developments that businesses, retailers and the public are currently facing, from the increased cost of materials and transportation to the war in Ukraine and inflation.

‘We have had to adjust our prices to reflect this increased cost base. Our approach during this period has sought to protect the prices of our most-loved and lowest-priced products.’

‘Our approach during this period has sought to protect the prices of our most-loved and lowest-priced products and families.’

Today’s geopolitical tensions have increased uncertainty around price developments.