MSE News: O2 raises prices for 7 million mobile customers

page3

Where are they getting 3.2% from?

Nearest I can find is 2.7, up from 2.0.

I assume they are cherry picking what rate and period to base their rise on?

Gordon_Hose

Their rise is 3.2% as stated on the emails people have received, an excerpt from the one I got: From 28 February 2013 your mobile line rental will increase by £0.50 a month to £16.00 a month. That's a rise of 3.2%, the same as the current rate of inflation.

Also on their website - http://www.o2.co.uk/prices

3.2% is in line with inflation.

samwardill

page3 wrote: »

Where are they getting 3.2% from?

Nearest I can find is 2.7, up from 2.0.

I assume they are cherry picking what rate and period to base their rise on?

3.2 was the RPI rate in October (which was before I even started my contract)!

Gordon_Hose

Just going by what they've given out...

"From 28 February 2013, your line rental will go up by 3.2%. That's in line with the current rate of inflation as at December 2012 when we made the announcement."

Gordon_Hose

samwardill wrote: »

3.2 was the RPI rate in October (which was before I even started my contract)!

The rate of inflation in October was 2.6%: http://www.rateinflation.com/inflation-rate/uk-inflation-rate

samwardill

Gordon_Hose wrote: »

The rate of inflation in October was 2.6%: http://www.rateinflation.com/inflation-rate/uk-inflation-rate

2.6% is CPI for October according to your link. O2 Ts & Cs quote RPI "at the date we notify you of the applicable price increase" which was actually 3%

samwardill

samwardill wrote: »

2.6% is CPI for October according to your link. O2 Ts & Cs quote RPI "at the date we notify you of the applicable price increase" which was actually 3%

I think this is an important point. I think that this is a mistake made by O2 and gives me the right to cancel my contract without penalty according to their terms and conditions. I'm actually not going to go to the Ombudsman now. I'm going to go back to O2.

Gordon_Hose

my link isn't really clear. It says the inflation rate is 2.6%, that's all.

I can't find anything for December, so how do you know they are wrong?

Gordon_Hose

"The Retail Prices Index (RPI) annual inflation stands at 3.0 per cent in November 2012, down from 3.2 per cent in October. The largest downward pressures behind the change in the RPI rate came from motoring expenditure, housing and household goods. These were partially offset by an upward pressure from food. The RPI stands at 245.6 in November 2012 based on January 1987 = 100"

From here: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/november-2012/index.html

samwardill

Gordon_Hose wrote: »

"The Retail Prices Index (RPI) annual inflation stands at 3.0 per cent in November 2012, down from 3.2 per cent in October. The largest downward pressures behind the change in the RPI rate came from motoring expenditure, housing and household goods. These were partially offset by an upward pressure from food. The RPI stands at 245.6 in November 2012 based on January 1987 = 100"

From here: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/november-2012/index.html

I think the November RPI figure was released today. The October RPI that they used was released on 13th November (6 days before I renewed my contract).