Nestle raises outlook after food price hikes

Nestle raised its outlook for the year on Wednesday (October 20).

The world's biggest food group says it's getting a boost from price hikes and strong earnings from coffee.

Sales of its Starbucks-branded products jumped more than 15%.

It now expects growth of up to 7% for the full year, up slightly on earlier forecasts.

But Nestle has warned of inflation pressures in the supply chain, which could mean higher prices for consumers.

The firm says its costs will rise by 4% this year, and even more in 2022.

That follows a similar warning from rival Danone earlier this week.

U.S. giant Procter & Gamble has already said it will raise prices in its home market to counter higher costs.

Nestle has kept its forecast for profit margins unchanged, indicating it expects to increase prices in line with rising costs.

Shares in the firm were up 3% in early trade Wednesday.

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