The latest ABCs reveal that market leader, The Sunday Times, was down more than 10% year on year, a further 4% drop since last month's figures, giving further evidence of price playing a key role in the consumer's decision-making.
The title is still feeling the effect of its price rise to £2 last year.
John Simmonds, the Independent group's circulation manager, said: "We are very pleased with the increase and are currently predicting continued growth."
But industry experts predict The Independent on Sunday's rise is nothing more than a spike in its ratings.
One circulation director estimated that the paper's circulation for Sunday 1 July, 2007, was 238,000, compared to 221,000 on the first weekend of July 2006, suggesting the 17% rise had dropped to 7%.
Simmonds said June was a tough month during which the quality dailies were struggling.
The Guardian seems to have lost the advantage of its Berliner format, with sales at 363,562 looking very similar to its pre-Berliner figures of 361,000 in June 2005.
In the London freesheet war, thelondonpaper recorded a circulation of 496,504 - its highest ever, and 108,000 copies more than its rival, London Lite.
General manager Ian Clark said the figures showed that, "despite the intense scrutiny they have been under, free afternoon newspapers have an important role in London life".
PROMOTIONS - WHO GAVE WHAT AWAY
- The Sunday Times gave away a two-for-one meal deal at Pizza Express
- The Mail on Sunday gave away a 10cc CD, a Peter Gabriel CD and a Crush DVD
- News of the World gave away a Big Brother pull-out
- Sunday Mirror gave away a Thomas the Tank Engine DVD
- Sunday Express gave away a two-part Beach Boys CD
- The Observer gave away a Book of Film.