>So a 16% hike when current US inflation is 3-4%?

When was the last price hike? Looking at historical inflation and working backwards, you only need to start at around late 2021 to get 16% cumulative inflation. In other words if they didn't raise their prices for 4 years, they'd be at par with inflation.

edit: another commenter mentioned the last price hike was around 4 years ago, so it's indeed in line with inflation: https://news.ycombinator.com/item?id=46192356

Percentages are fun because they can make something with a small absolute change look like a giant change.

No business is really going to care about $1.00/user, especially when it costs hundreds of dollars per user (or thousands) to migrate entirely away from the Microsoft ecosystem.

How much inflation has there been since the last price increase? From 2022 to 2025 it look likes like about 11%, so not all that different if you're trying to keep a round number.

Did you notice every price was a whole number?

Or that this was for business accounts that were already cheap? $1/seat isn’t going to cause a mass migration off the platform.

Or that some of the price hikes were 0%?

Fixating on this lowest price increase is deliberately misleading.

You would also have to go back and calculate price increases over time to compare against inflation over time?