have led a price-cutting war in Britain, indicated yesterday that rising paper prices may force a rethink.

Murdoch, Chairman and Chief Executive of News Corporation, told a news conference at the Davos World Economic Forum that no decision had yet been taken on whether to increase the news-stand price of his publications in Britain.

"If you're in mass media you need to be able to get to the public at a fairly inconsequential price,'' the Australian-born mogul said.

"I believed that papers were too expensive in London so I reduced the price.

With the cost of paper going up now and so on that will probably have to be corrected to some extent.'' But Murdoch said News Corporation had as yet made no decision on putting prices of its newspapers -- including the flagship daily The Times which now sells at 20 pence -- up again.

"But the price of paper has gone up by 30 or 40 per cent in the last three months. That changes the economics of newspapers,'' he declared.

Industry analysts in Britain say other broadsheet newspapers have been badly hit by the price war, which had forced them to bring down their news-stand costs to levels cutting their operating margins to the bone.

The analysts said any price increase by News Corporation would be welcomed by its rival publishers.

The Daily Telegraph, main rival to the Times but with a much larger circulation, and the troubled Independent sell for 30 pence. The liberal Guardian sells for 45 pence and the business daily, the Financial Times, for 65 pence.

RUPERT MURDOCH -- Chairman and Chief Executive of News Corporation.