Rising business costs could drive toy prices higherRising commodity prices are weighing on the Chinese economy, driving inflation rates high. The price hikes will soon be felt across the globe where toys for children are likely to cost more, according to a report.

Business Week reports that there are more than 8,000 companies in China that manufacture toys for children. As wages and commodity prices rise, businesses in the world's second-biggest economy are being forced to offset skyrocketing business costs onto consumers as they look to remain in the black.

During the first four months of this year, Chinese toy companies exported more than $2.6 billion worth of products, which represents a 17 percent surge from 2010. The cheap toys being produced in the country, however, are likely to cost more as companies deal with higher transportation and material costs, said HuaChuang Securities analyst Hua Zhongwei.

"If you take into account everything Chinese toymakers are dealing with - labor, material, exchange rate - a price hike is only a natural consequence," Hua affirmed. "There is a big chance for shoppers in the U.S. to face higher prices for Christmas gifts this year."

Thus far, some companies like Mattel and Hasbro have already raised prices. Others are expected to follow.
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