Starbucks to increase prices

AP Photo/Eric Risberg

(CNN) — Your Starbucks latte could cost you more starting Tuesday.

The coffee giant is raising its prices.

On average, a Starbucks drink will cost between five and 20 cents more.

The company estimates that only about 20 percent of orders will be affected and boost most total receipts by less than one percent.

The price change will be different in different areas of the country.

Starbucks is also raising the price of its packaged coffee sold in grocery stores by about eight percent, beginning July 21.

While retailers ultimately set that price, customers can expect to pay about a dollar more per 12-ounce bag.

Starbucks is just the latest coffeemaker to raise prices — Folgers, Dunkin Donuts and Maxwell House did so earlier this month.

The price of coffee has been rising worldwide, hitting a two-year high in April.

Increased global demand coupled with a drought in Brazil — which produces about a third of the world’s coffee — shot prices up about 59 percent this year.

But Starbucks said the price hike is because of its overall cost structure instead of skyrocketing coffee prices.

The company buys its beans in advance, and has enough for at least the rest of the year.

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