Starbucks confirmed yesterday that it will raise the price on some of its coffee by 1-2 yuan on January 1 in stores of the Greater China region.

The move comes under heavy pressure from the latest increase of material costs, said Li Jing, general manager for public relations in the Greater China region. However, she pointed out that Starbucks will cut prices of some products, such as vanilla lattes.

There is speculation that Coca-Cola also plans to raise prices after it said in a report that the rising cost of commodities, fuel, packaging and fruit are taking a toll on its revenues.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.