Wall Street Journal to raise price to $2

NEW YORK (Reuters) - Rupert Murdoch's Wall Street Journal will raise its newsstand price to $2 from $1.50, in part to reflect an increase in production costs amid high newsprint prices.

"The new price reflects the increased value of the paper as we continue to add content and features. It also reflects the increased costs we face in the production and delivery of the Journal," said a spokesman for the paper, which is owned by News Corp.

The move -- which brings the Journal's price on par with Pearson Plc's Financial Times -- comes as the U.S. newspaper industry suffers from weaker advertising sales, exacerbated by the economy and troubles in industries like autos and banking that are reducing advertising budgets.

Another Murdoch property, the New York Post, is in talks with rival tabloid New York Daily News to combine their printing, distribution and back office operations, a source familiar with discussions said on Tuesday, likely in an effort to cut costs.

The Journal's new price was first reported by Portfolio.com reporter Jeff Bercovici, who said the increase takes effect on July 28.

(Reporting by Robert MacMillan; Editing by Braden Reddall)