The consumer price index went up just 8.1% over the same two-year period, according to the Department of Labor.
"There is no indication of any change in the near future regarding the current state of competition," the agency's report concluded. "Market forces have not yet met the challenge of controlling price increases."
In a recent briefing for investors, AT&T boasted that its average monthly revenue per primary household line "ramped steadily over the past several quarters," to $60.16 in the first quarter of 2008 from $57.08 a year earlier.
The company pocketed $11.95 billion in profit last year, up more than 62% from a year before.
AT&T's Britton said consumers who don't want to pay to call 411 can turn to a variety of free services.
The best of the bunch is offered by Google ([800] GOOG-411), which, unlike most such services, doesn't require callers to listen to an ad before getting the desired number.
AT&T's version, 1-800-YellowPages ([800] 935-5697), includes at least two revenue streams for the company.
When I called for the number of a Westside pizza place, first a recorded voice told me that the service was sponsored by a loan company.
Then, before I got the number for the pizzeria, an ad played for another restaurant and I was given the option of getting that number instead.
Sure, I saved $1.99. But I had to sit through two plugs for companies I had no interest in.
"It's a new, emerging business model," Britton said. "We're testing it to see if it meets the needs of consumers and advertisers."
At least one of those groups is happy.
A quiet rate hike
Speaking of AT&T, the company raised the rates of 2.5 million Californians in April without providing required notification and will now have to credit customers for the higher charges.
This news was contained in a memo sent recently to Public Utilities Commission staffers, a copy of which made its way into my hands.
It says "human error" was to blame for the failure to give customers 30 days' notice, as required by state regulations.
Gordon Diamond, an AT&T spokesman, confirmed the contents of the memo. He said regulators had approved a 25-cent increase to the previous $10.69 flat rate for the company's 8 million residential lines statewide.
But he was unable to explain why millions of customers were left in the dark about the rate hike.
Households that didn't get notices will receive refunds in their November or December bills.
In most cases, the refund will be less than $2, not even enough for latte at Starbucks. But for AT&T, that's a more-than-$4-million mistake.
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Consumer Confidential runs Wednesdays and Sundays. Send your tips or feedback to david.lazarus@latimes.com.
