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It's a standard business tactic in all markets. It works best in markets where the users aren't very discriminate or have few other options.
I remember last year in my country, grain prices went up, prices on grain and bread went up. When later the grain prices fell drastically worldwide, incidentially the bread prices stayed the same.
Another standard tactic is defending the reduction once prices drops with things like "we use higher quality paper than other publishers, therefore we're unfortunately not affected by the drop in paper prices".
In the end you can only make them drop their prices by punishing them for the increases and shop elsewhere until its dropped.
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