Big Businesses Boost Prices of Popular Products

By Michael Lopez

Forget the celebrities and sports stars, if you want to know about some serious chisme, start watching the prices of commodities! While we don’t usually delve into money matters here, when the cost of McDonald’s cheeseburgers, Starbucks java and Netflix movies start going up, you can bet we’ll be blogging about it.

The costs of such commodities as meat, dairy and corn have recently increased, boosting prices at local restaurants. Fast food giant McDonald’s just announced plans to up the “value” on certain menu items by as much as 2.5 percent. Could Burger King’s shrewd new Brazilian owner follow suit? The uptick in commodity costs affects all restaurants, so don’t be surprised if the 99 cent deals beef up to $1.25.

Starbucks also blames the increasing costs of raw coffee commodities for its price increases. A company spokesman recently announced future price hikes of “more labor intensive and larger-sized beverages.”

“This is a necessary step that balances our need to run our business effectively while providing maximum value for our customers and shareholders,” the spokesman said.

The food and beverage biz isn’t the only industry marking up its products. We’re not sure what commodities go into making those red envelopes that Netflix ships out, but it's raising prices too. Monthly rental plans that used to be $8.99 and $13.99 increased by $1 this month.

And don’t even get us started on the rising prices of gasoline! Across the country, self-serve prices went up roughly 3 cents a gallon, pushing the national average to about $3.11. According to CNN, it’s due to an increase in crude oil costs, putting gas at its highest price since October 2008. If you haven't done so already, this is as good a time as any to invest in cars that use alternative fuels, such as electric cars, hybrids and even clean diesel, which can get you 550 miles on one tank of fuel.

If you’ve got spare change lying aroud, throw it in the piggy bank. You never know when you’ll need that extra Big Mac money.

Will rising prices stop you from buying these products? Sound off in the comments or @MTV3.

Tags Chisme, Finance, Food, gas prices, McDonalds, Money, Netflix, Starbucks