Starbucks has raised its coffee prices for the second time since April so the smallest latte or cappuccino now costs £2.05 while its largest costs £2.64.
The chain blamed rising operating and material costs for the 4% increase, twice the rate of inflation.
But in America the price of a Starbucks is considerably cheaper than in Britain at $3.21 (£1.55) for a small cappuccino, while a cup of coffee in a traditional diner can cost as little as 75 cents.
Industry insiders now expect rival coffee outlets in Britain to follow suit, although Costa Coffee and Caffe Nero both insist they have no plans to raise prices.
The Sunday Telegraph 04/11/07 page 19
