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STORY: Danone is the latest big food firm to beat forecasts.

The world’s biggest maker of yogurt said Wednesday (April 26) that sales rose over 10% to almost $7.7 billion.

That was the fastest pace of growth in a decade.

Besides dairy, Danone also makes water brands like Evian and Aptamil baby formula.

And it said all three of its businesses contributed to the strong quarter.

Price hikes of over 10% helped.

Like rivals Nestle and Unilever it’s raised prices to cope with higher costs for ingredients.

But the firms all face the challenge of judging how much consumers will accept before they stop buying.

Danone’s finance chief says the firm hasn’t yet seen any sign of a shift in shopping patterns.

But he said prices had probably hit a peak, and would decline over the course of the year.

Danone shares were up around half a percent by early afternoon.