The inflation rate as reported by the federal government is complete shit. It's likely closer to 10%
The equipment they're talking about is vastly different than the equipment in the previous year. How many people switched from SD to HD in that time? That was one of the peak years for HD adoption.
Internet speeds across the industry jumped drastically in 2012 due to DOCSIS 3 rollouts. I, personally, went from 15mb/s to 50mb/s over night with no cost increase to me at all.
In 2012 most cable companies introduced the new pay as you go plans which allowed you to pay a slightly higher rate in exchange for no contract.