Chicago, Oct 29 - Kellogg Co does not expect a ceiling on commodity inflation to last past 2010 as global demand for commodities and energy picks up, its top executive said on Thursday.
The world's largest cereal maker posted a quarterly profit that beat Wall Street forecasts earlier in the day, helped in part by lower commodity costs.
Chief Executive David Mackay said he expects costs for commodities used frequently by the company -- from corn to wheat and energy -- to rise about 3 percent in 2010 and tick up higher from there.
"Three percent, when you think about what makes that up, is probably as good as it gets," Mackay said in an interview with Reuters.
Consumers are also likely to remain cautious in 2010 as they remain concerned about keeping their jobs and will continue to focus on value when they shop, Mackay said,
"Consumers are going to remain under pressure because I think unemployment is going to remain higher than anyone would like," he said.