99 Cents Only Stores Raises Top Price to 99.99 Cents

By Beth Jinks and Heather Burke

Sept. 8 (Bloomberg) -- 99 Cents Only Stores will raise its top price for the first time in 26 years to 99.99 cents as rising fuel and commodity prices drive costs higher.

The 0.99 cent increase will take place at its 277 stores later this month, the City of Commerce, California-based retailer said today in a statement distributed by Business Wire.

The boost of less than 1 cent is ``in response to dramatically rising costs and inflation,'' Chief Executive Officer Eric Schiffer said in the statement. ``Just as Motel 6 was eventually forced to raise its price above $6, after 26 years we are forced to raise our price by just about one cent.''

Cash-strapped U.S. consumers, faced with rising unemployment, soaring food and fuel costs and falling home values, are bargain-hunting. The U.S. consumer price index jumped by the most in 17 years in the 12 months ended July.

99 Cents Only Stores Raises Top Price to 99.99 Cents....