British Consumers Feel the Squeeze as Average Phone Bills Go Up 14%

Inflation has wreaked havoc on the global economy because of the fact that this is the sort of thing that could potentially end up making necessary items more expensive. Companies are being forced to drive up prices otherwise it would be harder for them to turn a profit than might have been the case otherwise. This is putting the squeeze on consumers, and UK based phone users are next in line to feel the burn.

With all of that having been said and now out of the way, it is important to note that the Consumer Price Index in the UK recently revealed some startling figures. They are currently forecasting inflation at 10%, and to make matters worse this could go all the way up to 14% by April if phone companies don’t do anything to slash billing rates.

New customers for telecom companies will have to pay more money for their phone bills. That will put even more pressure on a cash strapped consumer base, making phone bills an even larger financial concern with all things having been considered and taken into account.

The CEOs of these telecom concerns have stated that they are planning to hike prices, since there is no other way for them to weather the troubling financial period we are currently immersed in. Although their concerns are certainly valid, Britain’s regulatory authority Ofcom has urged them to be transparent.

Corporations are notorious for using inflation as an excuse to drive up profits even though they’d be able to get by with the same old pricing scheme. They usually do this due to the pressure that they are facing with falling stock prices. A poor earnings report for a particular quarter can send a stock into a downward spiral, so many are saying that these companies don’t have a choice.

Still, this move is bound to get some backlash from the government. Labor MPs are already striving to reign these companies in. We will have to wait and see if they are successful and what sort of impact their regulations might have on the industry.

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