In February, coffee giant Starbucks Corp added 1 to 3 yuan to the prices of some espresso-based beverages and fresh-brewed coffee to offset higher costs.

"Costs of raw materials, property, labor and transportation have been increasing, and that's expected to continue, so it's inevitable that restaurant chains hike product prices to protect margins," said Gong Bo, industry analyst at Beijing United Innovation Capital.

The consumer price index rose to a three-year high of 6.5 percent last July, but by the first quarter of this year, it had fallen to 3.8 percent, according to the National Bureau of Statistics.

About the broadcaster:

Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.

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