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Commodity costs and returns.
Food makers have been raising prices as commodity costs climb.
See articleThe surge in commodity costs hurt some food companies.
But eventually, higher commodity costs will pass through to consumers.
McDonald's raised prices last year in China to offset an increase in commodity costs there.
The company lowered its full-year earnings forecasts because of rising commodity costs.
Operating profit fell 8 percent as a result of higher commodity costs.
Prices are volatile due to fluctuating commodity costs and intense competition.
Kraft lowered its full-year forecast because of weakness in consumer confidence and rising commodity costs.
Mr. Powell said he expected higher prices to help offset rising commodity costs.
Commodity costs also ended up being higher than expected, he said.
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