General Mills Boosts Cereal Prices

General Mills is raising prices on its cereals and flour mixes by up to 5 percent to counter sharp increases in packaging costs and grain prices.

The company said Monday it would raise prices on its 35 ready-to-eat cereal brands by an average of 2.9 percent and by 5 percent on Bisquick, Wondra, Softasilk, Betty Crocker Pancake Mix and WheatHearts.

“Even with this 2.9 percent increase, our cereal prices will still be 3 percent lower than they were 2-1/2 years ago because we’ve lowered our prices significantly during that period,” said Joe Rutledge, a company vice president.

General Mills last increased prices in January 1993 and has reduced cereal prices by an average of 6 percent since then, he said.