Caterpillar Inc. (CAT) said Monday it will raise prices on most of its construction machinery by up to 2% beginning in January.

Caterpillar, the world's largest producer of bulldozers, excavators and other construction equipment by sales, didn't cite specific reasons for the increase in its announcement, saying only that the rise was caused by "current industry factors and expected general economic conditions."

Caterpillar anticipates global economic growth of 2.2% growth in 2010, following an estimated 2.2% decline in global gross domestic product in 2009. Demand for construction equipment has fallen sharply this year, prompting Caterpillar to lay off tens of thousands of workers and close assembly plants to lower its fixed costs.

But steel costs for Caterpillar and other manufacturers have remained doggedly high compared with previous global economic downturns.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com