A senior BBC insider said it was an unhealthy way to do business.
This was the spot rate of inflation in September this year.
Frazer said the lower license fee rise would help UK households with the cost of living crisis.

BBC drama ‘Doctor Who’BBC
We know family budgets are stretched, which is why we have stepped in again, she said.
We wouldnt describe the conduct of the government in recent months as trust building.
Concerns have been heightened amid allegations that the government has recently been questioning BBC editorial output.

Two sources said ministers have been frequently hassling executives over news reporting, particularly involving the Israel-Gaza conflict.
But if theres something more going on, then thats when you get concerned about independence.
It risks lasting harm to our national broadcaster.
The DCMS declined to commit to greater transparency during the BBC funding review.
We will confirm the consequences of this as we work through our budgets in the coming months.