McDonald's (MCD) is increasing the price of its cheeseburgers in the UK for the first time in 14 years as costs soar and consumers reign in spending.
The hike means the price of the fast food giant's cheeseburgers will cost more than a pound for the first time from 99p to £1.19 as it passes on rising costs to customers.
The fast food franchise said on Wednesday the increase was necessary as it tries to cope with "incredibly challenging times".
The change will also affect other items on its menu, with the price of "menu items impacted most by inflation" going up between 10p and 20p over the summer.
But some products will be unaffected and others will vary across its 1,300 UK restaurants as some prices can be altered by franchisees, it said.
McDonald’s UK & Ireland CEO Alistair Macrow, said: "Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising inflation,” he said in an email to customers.
"At times like this, we know that providing great value is important.
"Since we opened in the UK in 1974, we have committed to offering great tasting food at affordable prices, and that commitment will not change.
"But, today’s pressures mean, like many, we are having to make some tough choices about our prices."
Shares in the company fell 0.2% in pre-market trading in New York on Wednesday.
It comes after inflation hit a 40-year-high of 9.4% in June, with the cost of food one of the major forces driving up living costs as sharp rises in prices of staples such as milk, butter and eggs propelled food price inflation to 9.8%. The Bank of England has predicted inflation to rise above 11% before the end of the year.
McDonald's is the latest in the line of companies to hike prices of its products. Rival chains KFC and Nando’s and KFC have already hiked prices as the supply chain disruption caused by the war in Ukraine pushed up the costs of poultry.
On Tuesday the owner of Marmite, Ben & Jerry’s, Unilever (ULVR.L), said it lifted prices by 11.2% to cope with a €4.6bn ($4.7bn, £3.9bn) bill for inflation, warning further increases were on the horizon.
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