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Starbucks raises prices in certain markets

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Your regular cup of morning Joe just got a little more expensive depending on where you live.

Starbucks Tuesday raised prices on some drinks in several major markets including Southern California (Los Angeles), the Pacific Northwest (Washington and Oregon), the Midwest (Chicago) and Hawaii.


According to Reuters, the price of small latte went up 10 cents, or almost 4 percent, to $2.75 at a Starbucks cafe in downtown Los Angeles.

Starbucks no longer conducts blanket price changes in its cafes and adjusts prices on certain drinks in a market-by-market basis.

A company spokesman confirmed the increases but declined to give specific details. The last Starbucks price increase was in March, that's when they raised prices of their pre-packaged coffee by 12 percent-- it was the company's first price increase since 2008.

The increases are partly due to the rising cost for coffee and other key commodities.  The price of a pound of raw coffee beans has almost doubled in the past year due to rising demand and higher fuel costs.

Starbucks isn't the only coffee seller to have raised prices this year.  Kraft Foods Inc., makers of Maxwell House, raised prices 22 percent in March. J.M. Smucker Co., the maker of Folgers raised their prices by 10 percent.  Even discount retailers like Costco have raised their prices.

 

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