Starbucks Upping Prices

Starbucks is raising prices by an average of about 1 percent in the U.S. Northeast and Sunbelt regions on Tuesday, a move affecting cities such as New York, Boston, Washington DC, Atlanta, Dallas and Albuquerque.

Starbucks expects high prices for things like coffee, milk and fuel to cut into profits this year and along with restaurant operators ranging from Chipotle Mexican Grill to McDonald's Corp -- is raising prices to help offset some of that cost pressure.

In New York City, prices for 12-ounce "tall" brewed coffees and latte drinks each will go up 10 cents. Prices on about a half a dozen other beverages also will increase, Starbucks spokesman Jim Olson told Reporters.

The world's biggest coffee chain raised prices on some drinks in California and South Florida in November. Those regions are not affected by the pricing action.

Olson said the price for a 16-ounce "grande" brewed coffee, Starbucks' most popular beverage, remains the same across the United States and has not changed since January 2011. The price for grande lattes is unchanged in most markets, he added.

The Seattle-based chain has not made across-the-board price increases since 2007, choosing instead to adjust prices on a market-by-market basis.

Starbucks caters to a more affluent customer and last time it raised prices it went without apparent pushback.

The company previously said it expects costs for commodities such as coffee and milk to lower fiscal 2012 earnings by about 21 cents per share.