Starbucks to raise prices in Atlanta

Starbucks said Tuesday it is raising some prices regionally, including in Atlanta, as it faces rising ingredient costs.

The Seattle coffee chain is raising prices about 1 percent in the Northeast and Sunbelt regions. Starbucks wouldn't disclose all of the states in which it is raising prices, but the regions include New York, Washington, D.C., and most Southe states. They exclude Califoia and Florida.

Besides Atlanta, other cities where it will raise prices include Boston, Dallas and Albuquerque, N.M. The price for a "tall" coffee will go up 10 cents in the regions, and the chain will raise prices on about six other beverages. But beverages that are "grande," the next size up, won't change.

Starbucks spokesman Jim Olson said the prices reflect competition in certain markets and higher costs for coffee, fuel and other commodities. The last across-the-board price increase was in 2007.

Starbucks has been a standout among its peers in the tough global economy because consumers have retued to small luxuries like lattes. But it is facing challenges ranging from the drag of a weak economy on its customers to higher costs.

It has expanded overseas, increased the number of products it offers, expanded its loyalty program and upped its presence in grocery stores and other retailers to help drive growth.