Weak consumer spending and intense competition among retailers are forcing some makers of packaged goods to lower their prices, intensifying the threat of eurozone deflation.

Consumer goods giant Unilever has reported an 8.4% rise in first-quarter sales, helped by price hikes and emerging market growth.

Consumer goods group Unilever said 2012 will be a difficult year as growth in emerging markets — which accounts for more than half its business — slows and demand in Europe and North America stays flat at best.