Starbucks to raise prices in certain regions

Paul Sakuma/Associated Press
Starbucks says commodity costs are pushing prices up.

NEW YORK - Starbucks is raising some prices as it faces rising ingredient costs.

The Seattle coffee chain will increase prices about 1 percent in the Northeast - including Boston - and in the Sunbelt. Yesterday, Starbucks would not disclose all of the states where it is raising prices, but the regions include New York, Washington, D.C., and most Southern states, but not California and Florida.

The price for a “tall’’ coffee will go up 10 cents, and the chain will raise prices on about six other beverages. The prices for beverages that are “grande,’’ the next size up, won’t change.


A spokesman said the prices reflect competition in certain markets and higher costs for coffee, fuel, and other commodities. The last across-the-board price increase was in 2007.

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Starbucks has been a standout among its peers in the tough global economy because consumers have returned to small luxuries like lattes. But it is facing challenges that include the weak economy.

It has expanded overseas, increased the number of products it offers, expanded its loyalty program, and enlarged its presence in grocery stores.