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Yellow Pages Rate Cap Abolished

From the early 1990's Yellow Pages have been required to keep in place a rate cap on the increase of Yellow Pages advertising. The rate cap was put in place by the Monopolies & Mergers Commission. The MMC doesn't exist today - its functions have been taken over by the Department of Trade & Industry (DTI) . The rate cap was equivalent to the retail price index (RPI) less 6%.
The RPI is calculated by economists and represents a theoretical basket of everyday products - in layman's terms how much what you spend at the shops goes up.
Several years when inflation ran at 6% it meant that the cost of Yellow Pages adverts and associated products decreased by 2%.
The new rate cap will be the retail price index less Zero%. In other words Yellow Pages adverts can now be increased up to the rate of inflation. We fully expect Yellow Pages to take advantage of this with rate hikes in the 2008 financial year.

Agree? Disagree? Do let David Clarke know what you think by commenting below.

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