Responding to inflationary pressures, 99 Cents Only Stores confirmed yesterday that it is raising its maximum price for the first time in 26 years -- to 99.99 cents.

"In response to dramatically rising costs and inflation, 99 Cents Only Stores is forced to raise its price by almost one full penny to 99.99 cents, which is still just below a dollar," said Eric Schiffer, the company's chief executive.

The nearly 1-cent hike will take effect at the company's 277 stores later this month.

"The 99-cent price point, particularly today with inflation that we've seen and increases in transportation costs and everything, it's more challenging to offer a full selection of products for 99 cents," said 99 Cents Only Stores President and Chief Operating Officer Jeff Gold.

The retailer lost 1.5 million dollars last quarter, so now it is looking at a new pricing structure that would see 99-cent items sell for more, said Gold.

Founded in 1982, 99 Cents Only Stores is a price-point retailer chain in the United States, mostly selling products with prices of99 cents. Most of the stores are centered in Southern California, with others in Nevada, Arizona and Texas.