RPT-P&G and Unilever raise prices in China -paper

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SHANGHAI, March 28 (Reuters) - Procter & Gamble and Unilever will raise their prices on detergent and soap in China by up to 15 percent next month, the Shanghai Daily reported on Monday.

Unilever confirmed the newspaper report but declined to give additional details. P&G could not be reached for comment.

In anticipation of the price hikes, shoppers have been clearing out shelves of detergents by the two brands at large supermarkets, prompting local government officials to ask stores to ensure adequate supply, the English-language Shanghai Daily said.

Domestic brands have also raised prices by 5 to 15 percent, the paper reported.

Chinese policy makers have been battling inflation, which reached an annual 4.9 percent in February, as food and other prices have soared, eating into incomes especially of the country's lower-income groups.

As China worries about balancing inflation with growth, it has kept a keen eye on foreign companies operating in the country. Earlier in the year, the economic planning agency fined Wal-Mart Stores and Carrefour SA for manipulating product prices. [ID:nTOE71L03Q]

Shanghai's Development and Reform Commission, the local planning body, is investigating the matter of P&G and Unilever raising prices, the paper said.

McDonald's Corp raised prices on its menu in China in November because of rising materials costs.

Consumer goods makers have also been raising prices in other markets.

Earlier in the month, P&G said it would raise its U.S. detergent prices by 4.5 percent in June in response to rising costs of raw materials, packaging and transportation. [ID:nN18128833]

P&G and other consumer products makers are dealing with higher costs for paper, aluminum and other goods used in product manufacturing, as well as higher transportation costs. (Reporting by Melanie Lee; Editing by Jason Subler)