Why is RPI Increase allowed?

[Getafix]

@Natasha

I am not questioning how RPI is set. I believe that lot of people are aware of how it is calculated.

My Question why does Vodafone have to increase the Price?

Possible answers are,
1. Because to cover the Cost of Inflation as technically purchase power of Currency is lower (RPI)

2. Because they want to as makes more money.

3. Because industry Norm.

4. Any other Reason (please provide reason)

How Vodafone increase the price is irrelevant, as mentioned in my previous post.

[hrym]

RPI is now reckoned (including by the ONS) to be statistically flawed.   CPI is regarded as better and was originally introduced to exclude housing costs when hig inflation was a political issue.   I've never quite understood why it's used by organisations that aren't affected by housing costs - other than it being the higher of the two rates, of course.

[Getafix]

@hrym

That is another question, but for now question is what is the reason that Vodafone increases the price for those in Contract?

[Bushey]

If Vodafone enters a contract with a supplier I bet they will insist the price is fixed for the duration. As I did. As per any other fixed term agreement I've entered into. Only at the end of that period (ie 12 month contract) should they be able to increase charges. As such I will not consider Vodafone for other services I was thinking of and at the end of my term I will taking my business elsewhere.

[Bushey]

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@Getafix wrote:

I have just been thinking about this as trying to work out the real reason for this?

So, why do they need to increase the Tariff by RPi?

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If Vodafone enters a contract with a supplier I bet they will insist the price is fixed for the duration. As I did. As per any other fixed term agreement I've entered into. Only at the end of that period (ie 12 month contract) should they be able to increase charges. As such I will not consider Vodafone for other services I was thinking of and at the end of my term I will taking my business elsewhere.

[jeffkinn]

But it isn't a fixed price or fixed term contract that's the point. Perhaps they should be but they aren't and that shouldn't come as a surprise to any customer.