Mobile and broadband price hikes to be investigated

The communications regulator Ofcom is investigating mobile phone and broadband operators who increase prices for customers mid-contract.

The regulator says it is "concerned" about the degree of uncertainty consumers face about future price rises outlined by providers.

Customers' budgets are currently being squeezed as inflation - the rate at which prices rise - hits record highs.

Companies say their monthly charges can increase in line with official figures.

Dramatic rises in inflation over the course of the last year mean many customers have seen their contract charges increase significantly, and are likely to see that again this April.

Inflation figures are released every month, showing the average price increase or decrease across lots of different products.

That rise often happens in April.

Given that contract lengths are often 18 months or more, the possibility for big changes in the inflation rate are likely during the lifetime of a contract, and customers often have no way of ending those contracts without paying an exit fee if the payments become unaffordable.

The question the regulator is looking at is whether the scale of price variation is made clear enough to customers when they sign up to a new phone or broadband deal.

Ofcom says it will publish its report later this year, and make a decision on whether or not it will intervene to make sure that customers know exactly what they could be paying when they sign the contract.