BATTLE CREEK, Mich. (AP) _ Kellogg Co. has raised the price of its cereals an average of 3.2 percent.

The rise was a ''response to increases in overall business costs,'' company spokesman Dick Lovell said.

Kellogg and fellow cereal giant General Mills have been battling for the past year with competing coupons and price reductions.

General Mills said two weeks ago it wanted to stop the cutthroat competition. But analysts weren't sure if Saturday's price increase was a signal that Kellogg wants a truce.

''It doesn't mean that (the war) is over because it could be that most of this price hike will be rebated to the consumer through discounts,'' said David Rabinowitz, an analyst with Kidder Peabody in New York.

Battle Creek-based Kellogg last raised prices in May, by 3.7 percent.