Starbucks Coffee (SBUX) Plans Price Hike as Raw Coffe Prices Tumble

Starbucks (Nasdaq: SBUX) is said to be hiking prices to offset increasing rent and wage costs.

The cWSJ noted that the price hike comes even as raw coffee prices have fallen recently. The 1 percent increase will take effect on Tuesday.

Arabica futures have fallen 42 percent from peak levels late last year.

One spokesperson for the Seattle-based coffee giant said, Our pricing philosophy is to balance our need to run our business effectively while providing maximum value to our customers.

Shares of Starbucks are down 0.3 percent.

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