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News Summary: Starbucks hiking prices

The Associated Press

PRICE JOLT: Starbucks Corp. says it's hiking prices on average by 1 percent nationally starting Tuesday.

DETAILS: The company says the price for many drinks, such as medium and large brewed coffees and Frappuccinos, won't change in most its 11,000 U.S. cafes. A representative says the increases will vary by region and will apply to different drinks.

BACKGROUND: The price hikes come even as coffee costs have been falling. In the last quarter, Starbucks cited lower coffee costs for a stronger profitability. The company notes that coffee represents just one of many costs and historically has accounted for less than 10 percent of store expenses.