Increasing commodities costs have led Kentucky Fried Chicken to raise its prices in China for the second time this year, state media reported. The increases went into effect on Monday. Prices will rise up to RMB2.5 (US$0.36) for some items, said Xu Hui, KFC’s public affairs director. Xu blamed the soaring prices of fuel and edible oil, and the increasing costs of labor and electricity for the latest rise in prices. In March, KFC prices in China rose up to RMB 1.5 (US$0.21) per item. "The price increases are inevitable based on the rising food and commodity prices, and no company will be able to absorb the price on a long-term basis," said Ashok Sethi, regional director of UK-based market research company TNS. The Kentucky-based restaurant chain posted a US$378 million operating profit for the second quarter. Its China division contributed US$90 million.