Kraft Foods intends to increase prices on many of its products to offset rising energy and packaging costs.

Kraft announced last week that it will hike the price of many products by an average 3.9%, telling customers that most increases would take effect immediately, although items on direct-store delivery will not change until the New Year.

Increases apply to cookies, crackers, dog treats, beverages, lunchmeat products, and others. Soaring oil prices have affected packaging expenses and the cost of running plants and transporting, leading companies like Kraft to raise prices and cut yearly profit estimates.