UK rail fares set to increase by 1.6 per cent in January despite pandemic
UK rail fares are set to increase by 1.6 per cent in January, adding more than £100 to many annual season tickets to London, after an unexpected rise in a controversial measure of inflation.
Official figures published today showed that retail price index (PRI) inflation rose by 1.6 per cent in July year on year. That was up from 1.1 per cent in June and above economists’ expectations of 1.2 per cent.
The rise is expected to increase rail fares by the same amount. They are typically set according to July’s RPI figure. It will apply to regulated fares in England and Wales and most in Scotland, including pricy season tickets.
However, campaigners and industry groups have called for the government to delay price rises in January. They point to reduced passenger numbers and a historic recession weighing on wages.
RPI has long been a controversial measure of inflation. In part this is because it is consistently higher than the consumer price index (CPI). The Bank of England favours the latter measure, which came in at one per cent in July.
The Office for National Statistics (ONS), which published today’s figures, said: “The RPI does not meet the required standard for designation as a .”
Yet it said it still publishes it because it “continues to be widely used in contracts”.
Passengers call for cuts in rail fares
The potential rise in rail fares will anger many passengers. Unemployment is rising sharply and many incomes are being squeezed.
It is, however, considerably lower than the 2.7 per cent rail fare increase of January of this year. That was slightly less than the July 2019 annualised inflation figure of 2.8 per cent.
Nonetheless, passenger watchdog Transport Focus yesterday said rail fares should be cut to entice travellers back to trains after coronavirus.
It said in a report: “As more people gradually return to work in the coming months the railway must ensure it can offer better value for money.” It said this would help “attract commuters once again”.