Dove and Lynx maker Unilever hikes prices on shoppers to offset soaring costs from the Iran war

Unilever — the FTSE 100 giant behind Dove, Lynx, Pot Noodle and Marmite — raised prices by 2.3 per cent in the third quarter as oil price spikes from the Iran war drove up ingredient, energy and shipping costs. Underlying sales grew 5.2 per cent in the three months to 30 September, though volume growth slowed from 5.5 to 2.9 per cent. Chief executive Fernando Fernandez said the step-up in price was needed to "offset the impact of higher commodity costs." Reckitt Benckiser, which makes Dettol and Durex, also lifted prices by 4 per cent across Europe in the same period.

Inflation hit 3.5 per cent in the year to September 2026 — its highest level this year — with food inflation set to hit 4 per cent before Christmas.

Unilever's food arm was its weakest performer, with sales up just 0.1 per cent in the quarter against 9 per cent growth in home care.

The company is selling its food business — including Marmite — to US firm McCormick in a £33.8 billion deal expected to close by mid-2027.