Nestle, the biggest food corporation in the world has said it expects the prices for staple items will continue to rise throughout 2023, following a year of increasing prices which have made the purchase of groceries a continuing struggle for the average consumer.

Nestle was forced to increase its prices by 8.2% last year, but notes it still saw its profits impacted, as the increases were not enough to offset its own increases in costs.

According to Mark Schneider, the CEO of Nestle, the company’s price increases, which will vary by category and market, will be “very targeted” and will only be used where the “input cost inflation justifies it.”

Schneider said, “We are still in a situation where we’re repairing our gross margin and, like all the consumers around the world, we’ve been hit by inflation and now we’re trying to repair the damage that has been done.”

Schneider offered no insight on which of the company’s 2,000 brands might receive what price increases. The company’s products include confectionaries, frozen foods, and baby formula.

In a statement, the company said, “Last year brought many challenges and tough choices for families, communities and businesses. Inflation surged to unprecedented levels, cost of living pressures intensified, and the effects of geopolitical tensions were felt around the world.”

As the costs of commodities have risen alongside the cost of wages, food production companies have been forced to walk a fine line with regard to pricing strategies. In the competitive food market if they raise prices too high, customers may trade down to less expensive brands or products. However if they fail to raise prices enough, profits will suffer.

Unilever, Coca-Cola, Heineken, Colgate-Palmolive and Procter & Gamble have all indicated they will need to raise prices in 2023, as rising commodity, energy, and labor costs raise their overhead.