Vodafone Price Hike

thevideoguy

I just received an email from Vodafone informing me that they are putting their prices up by 9.3% as of April. They say this is due to CPI increase of 5.4% plus an additional 3.9% to allow them to invest in their network. It is actions by companies like this that are pushing the UK into a massive inflationary spiral. I cannot believe Vodafone are seeing this level of increase in their costs (unless they have decided to give all their workers an equivalent wage increase), so this is profiteering at the detriment of consumers that have no choice but to stay or face massive exit penalties.

MSE_James

You can find MSE's news article about these price rises here:  https://www.moneysavingexpert.com/news/2022/03/vodafone-price-hikes-inflation/

thevideoguy

@MSE_James - thanks. The article is just information, no commentary or opinion on the justification for the price hikes.

Just because CPI is currently running at a (hopefully temporarily) high level does not automatically affect a company's costs. By artificially pushing prices higher, using CPI as an excuse, means that CPI this year will rise to even higher rates giving these companies an argument to make even bigger increases next year, and we are back to the mid 80s with inflation out of control.

powerful_Rogue

Similar post here. It's what you agreed to when you signed up - https://forums.moneysavingexpert.com/discussion/6345281/vodafone-9-3-increase-is-it-legal/p1

giraffe69

thevideoguy said:

Just because CPI is currently running at a (hopefully temporarily) high level does not automatically affect a company's costs. By artificially pushing prices higher, using CPI as an excuse, means that CPI this year will rise to even higher rates giving these companies an argument to make even bigger increases next year, and we are back to the mid 80s with inflation out of control.

So Vodafone is exempt from things like increased energy bills and increased wages? I'm not defending the % increase but I don't think you help your argument by putting something so blatantly incorrect.
I think inflation was very high even compared with what it might be later this year in the early 1980s but had steadied by the mid 1980s.