Unilever, the manufacturer of household products such as Dove, Cif, and Domestos, reported sales growth of 6.8 per cent in the second quarter of 2008.

However, this growth was driven by a 7.4 per cent rise in prices. In fact, all growth in Europe, which was 2.3 per cent, derived from price hikes.

Pre-tax profits fell four per cent to £1,066 million and this has been attributed to a sharp fall in ice cream sales in Europe.

In the first quarter, sales were up by 7.2 per cent, thanks to strong sales in tea and laundry.

Patrick Cescau, Unilever group chief executive, said that considering the global economic downturn, the company's performance in the first six months had been "good".

"Looking to the future, our strategy leverages our strong brands, broad geographic footprint and products that meet everyday needs across a wide range of price points," he added.

Unilever employs thousands of people in Warrington, Manchester and Merseyside.