Ikea has promised to pass on cost savings to customers by cutting prices over the next year as pressures in its supply chain start to ease.

The company said that it has a “clear intention” to reduce prices this financial year, ending next August.

“Despite economic and geopolitical instabilities, we remain committed to making a positive difference in our customers’ lives; especially for those with the thinnest wallets,” said UK and Ireland chief executive Peter Jelkeby.

“Knowing that our customers continue to navigate a cost-of-living crisis, we absorbed significant cost increases to mitigate price rises as much as possible, investing in promotions, special offers, and, for the first time, an Easter sale.

“As we see supply chain costs start to ease, we have a clear commitment to lowering prices accordingly – ensuring we remain firmly on the side of the many people.”

It came as the business announced a 11.9% rise in turnover in the last financial year to £2.5 billion. Globally, parent company Ingka Group’s retail sales rose 5.7% to 41.7 billion euros (£36 billion).

The company said that 38.5% of its UK sales had been made online, up from 35.8% a year earlier.

Mr Jelkeby said: “Over the past 80 years, we have developed our offering, value chain and sales channels, supporting our vision to create a better everyday life for the many people.

“As we look back on the last year and forward to the next 80, we constantly ask ourselves, how what we do today can be done better tomorrow.

“Over the past year, we have made significant investments on this journey to create a more accessible, affordable and sustainable IKEA, to meet the evolving needs of UK households.”