The regulator said it was “concerned” about the degree of uncertainty consumers face about future price rises specified in contracts on the basis of inflation.
The unpredictability of inflation rates means it can be difficult to know, often months in advance, what an inflation-linked price rise will equate to in pounds and pence when consumers enter a contract.
The review comes in the wake of record high inflation, with the cost of living increasing across the UK since early 2021.
The annual rate of inflation reached 11.1 per cent in October 2022, a 41-year high, before easing to 10.7 per cent in November and 10.5 per cent in December 2022. High inflation affects the affordability of goods and services for households.
In preliminary research, Ofcom found that around a third of mobile and broadband customers do not know whether their provider can increase their price. Among those who do know their provider can increase their price, around half do not know...