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McDonalds India to hike prices amid rising inflation

Fast food chain McDonalds Corp plans to increase prices in India for the second time this year, responding to rising inflation which, along with an economic slowdown, it expects to temper demand growth for at least the next 7 months. The company said on Tuesday it would raise prices by 5-6 percent. That follows a 5 percent hike after the government increased the service tax rate in February.

"There is pressure and it's a tough environment, no doubt. But inflation is at 8-10 percent so we have to hike our prices," said Amit Jatia, vice-chairman of Hardcastle Restaurants, which owns the McDonalds franchise for west and south India.

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