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The
cheeseburger's price will now rise to 1.19 pounds from 99 pence.
McDonald's will also increase prices by 10p-20p for other items
that have been hit by rising costs, the burger chain's UK chief
told customers on Tuesday.
"We're living through incredibly challenging times," McDonald's
UK & Ireland CEO Alistair Macrow said. "Just like you, our
company, our franchisees who own and operate our restaurants,
and our suppliers are all feeling the impact of rising
inflation."
The increase, which will take the cheeseburger above the
psychologically important price point of 1 pound, comes as
British consumer price inflation hovers around 40-year highs and
is forecast to top 11% in October.
Macrow said the increases had been delayed for as long as
possible, and that the company was still committed to keeping
prices affordable.
The Chicago-headquartered chain, which runs more than 36,000
restaurants in more than 100 countries, also raised U.S. prices
by 6% last year, in line with increases at other
consumer-focused companies which are facing higher inflation
amid strong post-pandemic demand and supply chain disruption.
The British Retail Consortium said on Wednesday shops and
supermarkets had increased prices by 4.4% in the 12 months to
July, the largest rise since these records began in 2005.
Helped in part by higher prices, McDonald's Corp on Tuesday
reported better-than-expected profit even as expenses soared. It
said it was also considering whether to add more discounted menu
items as higher inflation, particularly in Europe, forces some
consumers to buy fewer big combination meals.
($1 = 0.8278 pounds)
(Reporting by Sachin Ravikumar; Editing by Kate Holton)
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