McDonald's likely to raise prices in 2011

If it looks, talks, and smells like inflation, it probably is. Perhaps McDonald’s could advise the BLS, whom views food and energy as too volatile to include in the core consumer price calculation, as to the importance of food and energy and the role of long-term commodity movements within economic cycles. Don’t think for a minute that McDonald’s is unaware of long-term commodity cycles.

McDonald's Corp (NYSE:MCD - News) said it would selectively increase menu prices this year to help offset an expected rise in its own grocery bill for the 10 commodities that account for around 75 percent of its food preparation costs.

Food prices are climbing around the globe and the world's biggest restaurant chain said its costs are expected to rise this year 2 percent to 2.5 percent in the United States and 3.5 percent to 4.5 percent in Europe.

Source: finance.yahoo.com