By Donny Kwok
HONG KONG (Reuters) - McDonald's Corp <MCD.N> has raised menu prices in mainland China by 0.5 yuan to 1 yuan per item with immediate effect because of rising materials costs as the country grapples with accelerating food inflation.
McDonald's, which has more than 1,000 outlets in China, was raising prices for the first time this year, while Yum! Brands Inc <YUM.N>, parent of KFC and Pizza Hut chains, had so far kept prices unchanged, the official Xinhua News Agency said.
"Because some materials prices have increased, we have adjusted menu prices accordingly," a McDonald's (China) Co Ltd spokeswoman said.
She said the increases only applied to mainland China, and its restaurants in Hong Kong and Macau were not affected.
McDonald's move is evidence of rising food prices in China, a key concern among Chinese leaders.
China was ready to take steps to curb inflationary pressures, Chinese Premier Wen Jiabao said after inflation in the world's second-largest economy hit the fastest pace in more...
