Tim Hortons raises prices for baked goods

Tim Hortons says it has raised the prices of certain baked goods and lunch items this week due to higher operating costs, including the rising price of ingredients.

The coffee and doughnut chain says the price of a muffin is five cents higher, while sandwiches have gone up by about 10 cents.

The price of coffee has not changed.

Tim Hortons says higher commodity prices are one factor in the hikes, which will affect most locations.

The price increases come just after Maple Leaf Foods Inc. warned this week that drought conditions will inflate food prices well into next year and maybe beyond.

Based in Oakville, Ont., Tim Hortons is Canada's biggest restaurant chain and the fourth-biggest in North America with more than 3,700 restaurants.