Starbucks Corp said it planned to raise prices of its lattes, cappuccinos, drip coffee and other drinks by 5 US cents, or an average of 1.9 per cent.

The increase, which goes into effect October 3 at all company-operated stores in the US and Canada, will mark the first time the company has boosted drink prices in two years.

Starbucks also is increasing the price of its coffee beans by about 50 US cents per pound, or an average of 3.9 per cent. That's the first price increase for whole beans in nine years, spokeswoman Valerie O'Neil said on Thursday (local time).

Starbucks is not raising prices on the prepared drinks it sells in refrigerated cases.

O'Neil said the company decided to charge more because costs, including fuel and energy, are going up.

"It's not one specific thing. It's part of our ongoing evaluation of business costs," O'Neil said.

Starbucks' pricing varies based on the market, but the 5-US-cent price increase will be across the board, regardless of drink or part of the country, O'Neil said.

Currently, a tall, or 12-ounce, cup of Starbucks coffee costs between US$1.4 and US$1.65. Twelve-ounce lattes cost between US$2.4 and US$3.1, depending on the market, and a tall mocha costs between US$2.7 and US$3.4.

Seattle-based Starbucks had 8,624 stores in the United States as of August 30, about 5,500 of which are company-operated. O'Neil said the company does not break out how many stores it has in Canada.

The coffee retailer has said it expects to open as many as 30,000 stores worldwide.

Source: China Daily