Consumers face fresh pressure on household budgets after consumer goods giant Reckitt said it is raising prices in the UK and around the world to offset higher costs linked to the Iran conflict.
Chief executive Kris Licht said the maker of brands including Dettol, Durex and Finish was implementing “moderate” price increases across most of its markets as it grapples with volatile input costs, particularly those linked to oil prices.
The company had previously warned that sustained oil prices of $110 a barrel throughout 2026 could add as much as £150 million to its costs. While crude prices have since eased, Reckitt said geopolitical tensions in the Middle East continue to create uncertainty.
In its half-year results, the company said: “While still volatile, oil prices have moderated since then and we currently expect a reduced input cost impact in 2026. We continue to view this as a manageable headwind and are taking actions to mitigate the impact.”
Those measures include selective price increases, with Licht saying the company was adopting a “brand-by-brand and product-by-product” approach.
Price rises have already been introduced across emerging markets, while increases are also being rolled out in Europe and the United States.
The announcement highlights how the economic fallout from the Iran war continues to ripple through global supply chains, even as energy prices have retreated from recent highs.
Despite the cost pressures, Reckitt delivered stronger-than-expected trading, with like-for-like sales of its core brands rising 4.2% in the second quarter. The company maintained its forecast for annual revenue growth of between 4% and 5%, helping shares climb more than 5% in early trading.
Demand for its flagship brands was boosted by new product launches, with the Dettol range performing particularly strongly in China.
Underlying operating profit fell 14.3% to £1.47 billion during the first six months of the year. However, the company said the decline largely reflected last year’s sale of a 70% stake in its essential home cleaning business, which includes Cillit Bang and Calgon.
Excluding that disposal, Licht said earnings were broadly flat and ahead of expectations.
Reckitt also unveiled a new £500 million share buyback programme after completing a £1 billion buyback in the first half of the year, signalling confidence in the group’s financial position despite ongoing geopolitical and inflationary pressures.
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