That’s how many times Starbucks has raised its prices in the last three months, and the coffee giant isn’t done.
On the eve of the government’s January inflation report, the company’s plans for further price hikes highlight just how relentless higher costs can feel to consumers these days. Starbucks raised its prices on Oct. 1 and then again on Jan. 1, and has more hikes planned “through the balance of this year,” CEO Kevin Johnson told analysts on a corporate earnings call last week. Cost pressures, including from inflation and wages, are part of the reason, as is the need to adapt stores to COVID-19 protocols, he said.
Inflation has soared over the past year, reaching a nearly 40-year high of 7% in December. With fallout from the pandemic straining supplies, the country hasn’t been able to meet the demand from consumers—demand that’s been stoked by ultra-low interest rates and government aid.
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