Sky will raise the prices of its TV and broadband offerings in the latest move by consumer brands to respond to cost increases.
Prices for the entertainment provider’s customers are expected to rise by an average of £43 per year from April, while mobile customers will pay an additional £2 a month due to the return of European roaming charges.
The group’s Essential Broadband package will jump 10% to £27.50, with Superfast services rising 9% to £30.50.
The hike comes as households incomes are being squeezed. The consumer price index jumped 5.5% in the 12 months to January, fueled partlyby consumer brands passing on cost increases to the consumer.
Ernest Doku, a telecoms expert at Uswitch.com, told the Guardian: “Sky does not base their mid-contract rises on inflation, but any hopes that customers might be spared the pain of increases have been dashed.
“For many this will be an unwanted burden during a time when households are feeling the pinch from bill hikes across the board.”
The cost increases follow those announced earlier this year by competitor brands, who have tended to calculate rises based on a markup of either last month’s CPI or the Retail Prices Index (RPI), which measured 7.8% in January.
Last month, BT Group PLC (LSE:BT.A) announced price rises for some of its customers across broadband and TV, including a 9.3% price rise for BT Sport customers on Sky.
But the £43 average price hike for Sky customers is not expected to surpass Virgin Media O2's mobile increase of more than £56 per customer.
Virgin Media, which ties price rises to a markup of RPI, will raise prices for mobile customers by 11.8% this year.
Sky's parent company Comcast (NASDAQ:CMCSA) closed yesterday at US$48.09, rising 0.08% over the day.