On Wednesday, Cheerios cereal maker General Mills Inc (NYSE:GIS) increased its full-year forecast, banking on resilient demand and higher prices for its breakfast cereals, pet food and snack bars.

Packaged food makers have been increasing prices as they seek to insulate their margins from inflated costs tied to labour, ingredients and transportation without drawing consumer wrath. Notably, Kellogg (NYSE:K), J.M. Smucker and Kraft Heinz (NASDAQ:KHC) Co also raised annual forecasts in recent months.

Shares of the Minnesota-based packaged food maker increased 1.5 per cent as it reported higher average selling prices contributed to its rise in net sales in the first quarter. The increase was partly offset by a decline in sales volumes and the impact of a stronger dollar.

The company estimates organic net sales to increase between 6 per cent and 7 per cent in fiscal 2023. It had earlier forecast sales to rise 4 per cent to 5 per cent.