Groceries Are Getting More Expensive: General Mills To Raise Cereal Prices In 2022

General Mills (GIS) has notified customers that it will be raising prices in mid-January on cereal brands like Lucky Charms, Cinnamon Toast Crunch, Cheerios, Wheaties, Reeces Puffs, Trix and more.

For some items, prices will increase by 20% beginning next year as the supply chain crisis continues to cause price increases.

CNN Business first reported the increase after a wholesaler shared a letter sent from General Mills.

According to market research firm IRI, price increases won't slow down anytime soon as they are expected to climb 8% for food, beverages and household basics for the first half of 2022

"The current operating environment is as dynamic as we've experienced in at least a decade, resulting in significant input cost inflation, labor shortages and challenges servicing the business," General Mills said.

Those with lower incomes have been hit hardest by the pandemic, as many of them have struggled with unemployment and the recent price increases.

According to the Department of Agriculture, grocery store food prices have increased 5.4% since October 2020. Prices of meat, poultry and fish have increased by 15%, according to the Bureau of Labor Statistics.

Experts cite how higher transportation, warehousing expenses, and rising labor costs have disrupted the food supply chain.

Minneapolis-based General Mills has many well-known brands, including Gold Medal flour, Betty Crocker, Yoplait, Pillsbury and Haagen-Dazs. Bloomberg News recently reported that General Mills was considering the sale of soup brand Progresso and ready-to-eat brand Helper for $3 billion.

As of 2:18 p.m. ET on Tuesday, shares of General Mills were trading at $63.67, up $0.79, or 1.26%.