people's most common feeling is that air tickets and hotel prices are soaring all the way. Recently, it seems that the price of daily necessities is also rising.

In October, Nongfu Spring indicated that the 2 yuan per barrel of water increased by 11%;

McDonald's has increased from 12.9 yuan to 13.9 yuan, and KFC's products have also increased in price by 1.5-2 yuan.

*** The bicycle price is increased to 1.5 yuan every 15 minutes.

The price increase from air tickets to bicycle enjoyment has made many people exclaim that the cost of living is too high.

In our previous concepts, rising prices were often tied to inflation. But this time, we should be wary of deflation. In the past three years, people's travel and entertainment have been suppressed, accompanied by a sharp drop in the income of travel agencies, airlines, homestays and other related industries. Now, people's demand has been quickly released, and it is not surprising that the market demand is large and the price has increased.

second, the prices of some commodities will naturally increase with the increase in raw materials and costs. Take mineral water as an example. Last year, the international oil price remained high, which made the purchase cost of PET (a plastic material) higher. Coupled with the cost of packaging materials such as cartons, labels and shrink films, the gross profit margin of Nongfu Spring in the first half of 2122 dropped from 61.9% in the same period of last year to 59.3%. With the increase of upstream costs, the price of bottled water naturally rose.

Even before McDonald's paid attention to the price increase at will, catering brands such as Haidilao, Xibei, Luckin Coffee and Chabaidao had already raised their prices. The reasons for the price increase in the catering industry also point to the increase in raw materials and employment costs. However, from another perspective, this may be a good thing for consumers. The increase in cost and fierce market competition can, to some extent, force businesses to make improvements.

with the development of economy and the change of people's consumption concept, price is no longer the only indicator for consumers to judge. The quality of food, supporting services and dining environment constitute people's comprehensive evaluation of a restaurant. Even if the price is higher, a good experience will still make consumers feel worthwhile. On the other hand, businesses whose prices are not low, but whose meals or service environment have no characteristics, will be eliminated by the market.