KELLOGGS WARNS OVER INFLATION

KELLOGG Co stood by its 2011 earnings target despite beating expectations in the second quarter, as price increases made to offset higher ingredient costs could hurt demand. Kellogg expects its full-year cost inflation to be around the high end of its seven per cent to eight per cent forecast. The company is 90 per cent hedged on commodities, but cited the impact of higher spot prices for the remaining 10 per cent.