{"id":34031,"date":"2023-03-22T08:20:44","date_gmt":"2023-03-22T08:20:44","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34031"},"modified":"2023-03-22T08:20:44","modified_gmt":"2023-03-22T08:20:44","slug":"warning-of-future-uk-broadband-price-hikes-as-inflation-jumps","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/03\/warning-of-future-uk-broadband-price-hikes-as-inflation-jumps.html","title":{"rendered":"Warning of Future UK Broadband Price Hikes as Inflation Jumps"},"content":{"rendered":"<p>Consumers hoping to see significantly smaller increases in the UK price of their broadband ISP, phone and mobile services next year were given an unwelcome wake-up call today after inflation, which had been forecast to fall sharply in 2023, unexpectedly jumped from 10.1% (CPI) in January to 10.4% in February (RPI also went up).<!--more--><\/p>\n<p>At present, most of the major telecoms providers have already announced average inflation-linked price rises for 2023 of around 14-16% (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/01\/jan-2023-inflation-figures-confirm-huge-uk-broadband-price-hikes.html\">here<\/a>) and many of those will hit bills from next month (the hikes are higher than inflation as big ISPs often add 3-4 percentage points on top). But the <strong>Bank of England<\/strong> recently projected that CPI inflation would fall sharply in 2023, to just under 4% by the end of 2023.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> Inflation is the general measure of how quickly prices for goods and services etc. are rising in an economy, which is often expressed as a percentage.<\/div>\n<p>Similarly, we&#8217;ve just had three consecutive months of gradual falls in inflation, which the BoE and others have clearly been expecting to accelerate. All good news for consumers, as future price hikes are likely to be much less aggressive than they have been during 2023.<\/p>\n<p>However, such hopes have just been dealt somewhat of an unexpected blow, which came after the latest inflation figures were released for February 2023 &#8211; revealing an unexpectedly sharp rise. The Consumer Price Index (CPI) hit 10.4% (up from 10.1% last month) and the Retail Price Index (RPI) reached 13.8% (up from 13.4%).<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #339966;\"><strong>BoE Inflation Forecast (February 2023)<\/strong><\/span><\/p>\n<p><img decoding=\"async\" class=\"ngg-singlepic ngg-none\" style=\"padding: 0px; border-radius: 4px; width: 100%;\" src=\"https:\/\/www.ispreview.co.uk\/wp-content\/gallery\/2023-uk-internet-statistics\/BoE-Feb-2023-Inflation-Forecast.png\" alt=\"BoE-Feb-2023-Inflation-Forecast\"><\/p>\n<p>The surprise increase in February 2023 seems to have been driven by higher than anticipated prices for food, clothing (particularly children&#8217;s and women&#8217;s clothing) and alcohol in pubs and restaurants. But the fact that it happened at all, and to such a degree, is likely to cause some concern for all those expecting inflation to be falling, and sharply.<\/p>\n<p>Instead, inflation seems to be plateauing at its peak and staying there for much longer, but a sharp fall is still forecast. The question now is whether that fall will be as dramatic as originally expected, or if it may instead be much more gradual. The next release for March 2023 is likely to give us a better idea of how far off the current forecasts really are, since we expected CPI to be a bit BELOW 10% at the end of Q1.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumers hoping to see significantly smaller increases in the UK price of their broadband ISP, phone and mobile services next year were given an unwelcome wake-up call today after inflation, which had been forecast to fall sharply in 2023, unexpectedly jumped from 10.1% (CPI) in January to 10.4% in February (RPI also went up).<\/p>\n","protected":false},"author":1,"featured_media":19870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,38,34],"class_list":["post-34031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - 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