Legal Economics

Pricing & AFAs

The rate engine is still running, but clients are measuring the exhaust

Thomson Reuters’ rates report says worked rates rose 7.

BY ECONOMICS DESK · MAY 14, 2026 · 1 MIN READ

Thomson Reuters’ rates report says worked rates rose 7.4% in 2025 against 2.8% inflation, and that law firm revenues are now more influenced by rate hikes than legal demand. The commercial risk is that pricing power is being treated as strategy, when clients are already shifting work, scrutinising value and asking whether AI-driven efficiency should change the price conversation.

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