Chinese feel imported inflation pressure, from coffee to crude to cosmetics
- Price hikes at major coffee chains such as Starbucks and Luckin set off a social media firestorm, illustrating public gripes over inflation as Chinese consumers see own wages fall
- Analysts say outcry is an indication that Chinese consumers have turned more sensitive to inflationary pressures in a difficult economic climate
As American consumers from New York to San Francisco are sipping the most expensive coffee in a decade, China’s middle class is finding that surging bean prices have left a bitter taste in their mouths.
Many white-collar workers in big Chinese cities, who have taken a cue from Western drinking habits and made China one of the fastest-growing markets for coffee, are now lamenting the rising cost of socialising with friends and business partners in cafes.
And their complaints are echoing across Chinese social media. Last Wednesday, the rising price of coffee was the most discussed topic on Weibo, China’s equivalent of Twitter with more than half a billion registered users.
Their ire appears to be directed largely at major coffee chains, including Starbucks. At its locations in Beijing, a “grande” Americano now costs 30 yuan (US$4.73) after a recent 7.1 per cent price hike. Its competitors, such as Tim Hortons and domestic brand Luckin Coffee were also called out for their hikes.
Data showed that Weibo posts about the rising prices had garnered hundreds of millions of views.