Swedish furniture retailer IKEA made a surprise announcement on Monday ahead of the start of the World Economic Forum in Davos, saying it would not change plans to cut prices even as attacks on Red Sea shipping routes sent shipping costs soaring, Reuters reported. .

“Our commitment is to make sure we focus on investing in lower prices for our customers,” Jesper Brodin, CEO of Ingka Group, the holding company that owns the majority of IKEA stores worldwide, told Reuters.

He said that between September and November of last year, Ingka Group invested more than a billion euros in reducing prices in its markets and that it intends to reduce prices in 2024 as well.

New fears about the return of inflationary pressure

Attacks by Yemen’s Houthi rebels, who say they are acting in solidarity with the Palestinian people, have disrupted international trade and prompted major shipping companies to divert their ships to the West, bypassing the Cape of Good Hope in southern Africa.

This route is longer and more expensive, and higher transport costs have raised new fears about renewed inflationary pressures in Europe and elsewhere.

“This year is not for us to maximize profits. This is a year when we try to sail with less profit, but we are sure that we support people,” said Jesper Brodin.

He said IKEA also plans to expand its presence in India and China, noting that the retailer has seen a resurgence in the Chinese market.