McDonalds raising some prices in China

McDonald's Corp. is raising the price on some menu items at restaurants in China, citing increased costs and wage inflation, officials said. McDonald's officials called the move a "structural price adjustment," noting it had not raised the prices on some set meals, The Wall Street Journal reported. McDonald's has more than 1,300 restaurants in China, which has seen rapidly increasing inflation this year -- including a rise of more than 6 percent in June -- with similar increases expected in July. "The price adjustments are similar to industry levels," Sophia Luan, vice president of corporate affairs and communications at McDonald's China, said, without providing additional detail. Escalating food costs are a key factor in the consumer inflation situation, but rises in the cost of labor and material are also contributing to escalating prices, the report said. Chinese officials have vowed to make stabilizing prices a priority.