McDonald's warns of higher food inflation

McDonald's has warned of higher prices in the future. This is following a similar warning from Wal-Mart. Prices are rising faster than wages and salaries. In other words, the general standard of living is contracting.

McDonald's Corp (NYSE:MCD - News) forecast higher prices for beef, dairy and other items and said it would cautiously raise prices to keep attracting diners, who are grappling with higher grocery and gas bills.

Shares fell 1.5 percent after the world's biggest hamburger chain said it planned to offset some, but not all, of its higher food costs, with small price increases throughout the year.

Source: finance.yahoo.com