The Robert Horne Group is among the first to announce price increases "across the board by 2%-6%".

Other merchants look set to follow suit, including Robert Hornes Buhrmann Group sister company, Howard Smith Paper.

"We are, of course, aware that this is a difficult time to raise prices," said Robert Horne Group managing director Toby Marchant. "We took a record level of bad debt last year so we know that printers margins are under pressure."

One printer said he felt the sector was once again taking the brunt of mills and merchants troubles.

"Its easy for them to pass increases onto us, but they dont seem to think about the printer, who has to face the customer with further increases and could lose the work," he said.

But Marchant added: "Paper prices are now at an all-time low against the retail price increase, and mills have announced the first price increase in years."

The increases are being backed by several producers, which are contemplating pushing through an increase of around 8% for office papers.

Premier Paper marketing director Rob Viner said he had been informed of price increases of up to 8% by Stora Enso and International Paper.

"I wonder whether the Robert Horne announcement is connected to this," said Viner.

He added that Premier would monitor the situation before making any decisions on increases.

Story by Andy Scott