The National Association of Paper Merchants (NAPM) said its price index on all sales of fine paper in the UK only passed its January 2003 level in October 2008.
NAPM director Tim Bowler said: "The retail price index in January 2003 stood at 178.4, whereas in October 2008 it stood at 217.7.
"Although it must be recognised that all industries have their own rates of inflation, to a certain extent paper still represents excellent value for money as the preferred medium."
The comments follow on from a year in which paper manufacturers announced several price increases across the board.
Bowler said the biggest impact on the UK paper market is the recent 20% decline in the value of sterling, which has "more than eroded any benefit of the previous increases".
He added that the recent decline in pulp prices would be of no benefit to the integrated mills, while the impact of high energy and fuel costs would continue to be felt until the existing fuel contracts come to an end.
During 2008, global pulp and paper producers announced significant reductions in their levels of profitability and many have fallen into a loss-making situation.
Capacity reductions have also been implemented with more than 2m tonnes of paper being taken out of the market in the last 12 months.
Paper 20% cheaper than six years ago - NAPM
Paper merchants have defended the need for recent paper price increases by arguing that paper is now 20% cheaper than it was six years ago.
