CEO Ken Powell said Wednesday he didn't believe food prices would come down this year as they did last year.
"It would be highly unlikely that we'll see price declines," Powell said in a meeting with investors. "The long-term trends are inflationary, not deflationary. You're going to see pricing in a significant way." General Mills said it would implement price increases to help offset higher costs for ingredients and food, The Wall Street Journal reported. The company did not say how much it would raise prices. Shares of General Mills, the maker of food brands Pillsbury, Progresso, Cheerios and Yoplait, among many others, fell 0.5% to $36.87 in early afternoon trading. The company intends to rely on higher prices paid by consumers -- even though sales volume is expected to decrease -- to help boost top-line revenue into fiscal 2012.