WBEZ | commodity costs http://www.wbez.org/tags/commodity-costs Latest from WBEZ Chicago Public Radio en McDonald's to consider increasing prices http://www.wbez.org/story/beef-prices/mcdonalds-consider-increasing-prices <img typeof="foaf:Image" src="http://llnw.wbez.org//81205066.jpg" alt="" /><p><p>Oak Brook-based McDonald's says it's considering raising prices on some menu items in 2011. CFO Pete Benson says rising costs for commodities such as beef will be a big factor in whether prices go up.</p><p>Ephraim Leibtag is deputy director of research at the USDA's Economic Research Service. He says McDonald's probably won't be hit as hard as other retailers.</p><p>&ldquo;Restaurant prices have additional layers of value added that are not directly related to commodities,&rdquo; he said. &ldquo;And so the final price of a restaurant meal, although influenced by the food cost, is a smaller share than, say, the final product in a grocery store.&rdquo;</p> <div>Leibtag said commodities prices will continue to trend upward as long as grain and gas prices remain high. A Consumer Price Index forecast for 2011 shows an overall 2-3 percent increase in food prices for both restaurants and grocery stores. That same index shows beef prices are forecasted to edge up 3.5 percent.</div></p> Tue, 25 Jan 2011 21:05:00 -0600 http://www.wbez.org/story/beef-prices/mcdonalds-consider-increasing-prices