Colgate toothpaste is pictured on sale at a grocery store in Pasadena
Colgate-Palmolive raised prices in all its divisions Reuters

Another consumer products company announced a jump in profit and sales after it increased prices at a faster rate than inflation.

Colgate-Palmolive's net sales rose 10.5% in the third quarter from a year earlier to $4.92 billion. The increase in net income was even higher: 15%, to $708 million.

The toothpaste maker raised prices by 9.5% on a global average year-over-year. In North America, the increase was 7.5%, while in Europe, prices were bumped 11%.

The price adjustments were above the annual inflation rate of 3.7% in the U.S. and 4.3% in the Eurozone through September.

"Strong investment levels behind brand-building activities and innovation should continue in the remainder of the year as we continue to work towards balanced organic sales growth," Chairman and Chief Executive Officer Noel Wallace said in the earnings statement released Friday.

"The momentum in our business and the strength of our profit and cash flow performance adds to our confidence that we are executing the right strategies to deliver on our raised 2023 financial targets and generate long-term value for our stakeholders."

Colgate-Palmolive raised its forecast for organic net sales growth in 2023 to a range of 6% to 8%, from a previous estimate of 5% to 8%.

Other consumer products, including Kimberly-Clark, Procter & Gamble and Coca-Cola also said their profits were higher in the third-quarter after increasing prices.

U.S. consumers are willing to pay higher prices amid a strong labor market. The American economy created 336,000 jobs in September, the highest in eight months and above expectations.

The U.S. gross domestic product more than doubled the pace of expansion in the third quarter, boosted by strong consumer spending.