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If you've agreed (and managed) to deliver the requested deliverables within the agreed period, I struggle to understand why you'd feel obliged to provide a reason for a rate increase following that period.
The internal financial matters of your company should be of no concern to a client. All that matters is whether they're willing to pay your requested rate.
Would you really go into the local sandwich shop and ask why a cheese and pickle on granary has gone up by 30p since your last visit, or would you just make the decision to either pay the extra or go somewhere cheaper?
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