Paragraph spacing and objects

I am experiencing a the following problem:

[I have a document (booklet fold set-up) consisting of linked paragraph text and some objects (jpegs) spreaded through-out the booklet.]

After selecting All Text, I have set the paragraph spacing at the Paragraph Formating Docker >  Spacing > Paragraph & Line > After Paragraph to 70%. That very nicely decreased the whole document's space between paragraphs on all pages to the size I wanted. Problem is that the moment I move any object into that paragraph text and set it to Wrap Paragraph Text, then the space between the paragraphs simply jumps back to full size, even though it still shows 70% in the paragraph docker. (It happens only on that page, all others are still showing a 70% space between paragraphs.) And there's just no convincing it to go back. It's as if the presence of the object overrides this setting.

Is there a setting I am missing? Or should I go about it differently?