THE world's largest restaurant company, McDonald's Corp, has raised prices on some menu items in China.

The move comes as rapid food inflation and rising wages cut into its profits in the fastest-growing major economy, Bloomberg News reported.

The price of a Big Mac hamburger, Premium Grilled Chicken Sandwich and sundaes increased by 0.5 yuan (seven US cents) on September 28, while an Extra Value Breakfast rose 0.5 yuan to 1.5 yuan, an emailed statement sent by McDonald's China Co said yesterday.

McDonald's faces increasing costs in China even as it pins high hopes for sales growth.

Consumer prices in the world's most populous nation climbed at the fastest pace in 10 years in August, and the Oak Brook, Illinois-based fast-food chain last month announced wage increases in the country.

Energy prices

"Not only do you see commodity prices increasing across the board, but the costs to operate, such as energy prices, are also increasing dramatically" in China, Scott Rothbort, president of Lakeview Asset Management in Millburn, New Jersey, said in a Bloomberg TV interview.

McDonald's increased some menu prices this year before the most recent change, Shanghai-based spokesman George Gu said, declining to give specific details of either previous price changes or the increase in the company's food and raw-material costs.

The price increase wasn't related to rising wages, he said. Yesterday's statement was prepared but not generally released on September 28, he said.

"The rise in food and raw materials costs requires us to make this adjustment," the company said in the statement.

Food accounts for about a third of China's consumer price index, which gained 6.5 percent in August.