First Time In 14 Years, McDonald's Raises The Price Of Its Cheeseburger In The UK Due To Soaring Inflation

JAKARTA - Fast food restaurant McDonald's will raise the price of its cheeseburger by 20 percent in the UK, the first price increase for the popular item in 14 years in response to soaring inflation.

The price of the cheeseburger will now rise to 1.19 pounds from 99 cents. McDonald's will also raise prices by 10-20 cents for other items impacted by rising costs, the head of the British burger chain told customers on Tuesday.

"We are living through very challenging times," said McDonald's UK & Ireland CEO Alistair Macrow.

"Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the effects of rising inflation," he said.

The rise, which will take the cheeseburger above the psychologically important 1 pound price point, comes as UK consumer price inflation hovers around a 40-year high and is forecast to hit 11 percent in October.

Macrow said the hike had been delayed as long as possible, and that the company was still committed to keeping prices affordable.

The Chicago-based fast food chain, which operates more than 36,000 restaurants in more than 100 countries, also raised US prices by 6 percent last year, in line with gains at other consumer-focused establishments facing higher inflation, amid strong post-pandemic demand and supply chain disruptions.

Separately, the British Retail Consortium said on Wednesday shops and supermarkets had raised prices by 4.4 percent in the 12 months to July, the biggest increase since this record began in 2005.

Helped in part by higher prices, McDonald's Corp. on Tuesday reported better-than-expected profit even as costs soared.

It said it was also considering whether to add more discounted menu items as higher inflation, especially in Europe, forced some consumers to buy fewer large combination meals.