CPI (in January) plus 3.9% increases in March

Box Brownie

Box Brownie

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I have had notice(s), already advised some months back, that my Broadband and Mobile will be going up in March to the tune of CPI plus 3.9%

This equates to 14.4% in total when(if?) they do this every year from now on, I hope the CPI settles at a lower figure next year and thereafter :thinking:
 
It’s worse for O2 customers as it’s RPI plus 3.9%, which is higher.
 
its a complete con the RPI+ whatever gig i would fight back against it and demand a better deal.
yes some things have gone up , wages etc but the cost of providing the product will not have increased
anywhere near.
 
I had to look up the CPI vs RPI.....

If household costs, included in RPI, includes energy that is barking mad! More so in the current situation.

As @Mr Bump infers, any company using RPI likely needs challenging or to vote with your feet and switch to another (CPI based?) supplier?
 
Mr Bump said:
its a complete con the RPI+ whatever gig i would fight back against it and demand a better deal.
yes some things have gone up , wages etc but the cost of providing the product will not have increased
anywhere near.
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Well when you agree to it at the start of the contract, it’s a bit hard to then fight against it.
 
Box Brownie said:
I hope the CPI settles at a lower figure next year and thereafter
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But even if it does, the price will have gone up 14% this year and then whatever next year. I'm sure that you are aware of this but there seems to be a bit of smoke-and-mirrors going on that these levels of inflation are a temporary blip and inflation will come down. Inflation coming down means that prices are going up by a smaller amount, prices never come down.

CPI will come down because it is a measure of the amount prices have gone up in a year, so if gas prices remain at the same level as they are now for the next 12 months then CPI will come down, hence the government's promise to halve inflation is almost bound to happen without them having to do anything at all.
 
sirch said:
But even if it does, the price will have gone up 14% this year and then whatever next year. I'm sure that you are aware of this but there seems to be a bit of smoke-and-mirrors going on that these levels of inflation are a temporary blip and inflation will come down. Inflation coming down means that prices are going up by a smaller amount, prices never come down.

CPI will come down because it is a measure of the amount prices have gone up in a year, so if gas prices remain at the same level as they are now for the next 12 months then CPI will come down, hence the government's promise to halve inflation is almost bound to happen without them having to do anything at all.
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Point well put and yes I did not need a crystal ball to see where it is heading for all of us.

Prior to my renewal of our BB contract package that predated the introduction of (industry wide?) CPI + 3.9% , was a 2 years fixed costs. I negotiated the same package price though I was told that all new & renewals had the March(yearly) CPU + 3.9% increase term. NB the limited price checks I did showed that term was commonplace.

PS I have been the current ISP since IIRC 2003 and always remind them of that fact ;)

PPS I will pressing for a stable price point deal again at next renewal in 2024
 
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Any company that tells you exactly which inflation rate they plan to use is out to trick you :) Like that time the government changed pension calcualtions from RPI to CPI on the grounds that (1) almost nobody knew the difference (2) they would save a fortune.

Really good explanation of the difference here https://www.thetimes.co.uk/money-mentor/article/rpi-versus-cpi/?9 which includes the excellent quote
The government tends to link its own spending, such as benefits and the state pension, to the lower CPI figure. Find out more in our guide to the state pension.

Critics call this convenient “inflation shopping” where the government links expenses to lower CPI, and income-generators (like car tax) to higher RPI.
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In this case CPI is probably better for you than RPI but CPI + 4ish% is a lot no matter what inflation is. And since for many it's a non optional service, it will lead to higher inflation.

Meanwhile campaigners like Jack Munroe are in favour of more measures of inflation

www.bbc.co.uk

Jack Monroe hails inflation-measure shake-up

The food poverty campaigner had complained that official figures failed to reflect price rises for the poorest.
www.bbc.co.uk

They pointed out that when inflation was running at 5% plus, the real inflation for the less well off was much higher.
 
JonathanRyan said:
Any company that tells you exactly which inflation rate they plan to use is out to trick you :) Like that time the government changed pension calcualtions from RPI to CPI on the grounds that (1) almost nobody knew the difference (2) they would save a fortune.

Really good explanation of the difference here https://www.thetimes.co.uk/money-mentor/article/rpi-versus-cpi/?9 which includes the excellent quote


In this case CPI is probably better for you than RPI but CPI + 4ish% is a lot no matter what inflation is. And since for many it's a non optional service, it will lead to higher inflation.

Meanwhile campaigners like Jack Munroe are in favour of more measures of inflation

www.bbc.co.uk

Jack Monroe hails inflation-measure shake-up

The food poverty campaigner had complained that official figures failed to reflect price rises for the poorest.
www.bbc.co.uk

They pointed out that when inflation was running at 5% plus, the real inflation for the less well off was much higher.
Click to expand...

I’ve not seen a company say what the inflation rate would be.
 
I suppose I should have done this thread as a Poll to discern which ISP TP members are using?

I am using PlusNet and their CPI & 3.9% tallies with BT as they are a BT owned company.

So who are you with and what are their terms of yearly rises?

Are there any ISPs without such terms?
 
Virgin have just announced they will be using RPI +3.9%. Been with them for over 20 years and I think it's time to look elsewhere. I know that others have CPI+ and prices will still increase, but I think Virgin will lose a lot of customers going the RPI route.
 
JonathanRyan said:
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I meant when you signed your contract, and you know that. You signed it on the basis of it being what the RPI would be plus 3.9%. They did not predict what inflation would be.
The changes to O2 contracts going forward are based on what the RPI was at the point of calculation.
So, when you signed your contract they did not predict what inflation would be.
 
Box Brownie said:
So who are you with and what are their terms of yearly rises?

Are there any ISPs without such terms?
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I'm with Andrews and Arnold. They have never increased the price I pay in 20 years. Only times the price has changed are when I've changed service
 
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