Rail fares: Economic indicator that could influence the price increases to be announced
An economic figure that can be used to determine rail fare increases in England is to be announced.
The Office for National Statistics (ONS) will reveal Britain’s average income growth for July at 7am on Tuesday.
The government has adjusted this year’s cap on rail fare increases to the July 2022 level, which was 5.9%.
It was not announced whether the rates will continue to be based on average earnings growth.
Last month, the Department of Transport said increases next year would be below the retail price index (RPI) for inflation in July, which was 9%.
A spokeswoman said: “After the government made its biggest ever intervention last year to limit rail fare increases well below the rate of inflation, we will continue to protect passengers from cost of living pressures and rail fares will not rise as much next year increase as in July.” RPI number.
“Any increase will also be delayed until March 2024, temporarily freezing fares for passengers traveling at a lower price for the whole of January and February as the Government continues its plan to halve inflation.”
The value of 5.9% was the percentage change in the average total wage in July 2022 compared to the previous year.
The comparative value for June 2023 was 8.7%.
Around 45% of fares on Britain’s railways are regulated by the governments of Westminster, Scotland and Wales.
These include season tickets for most commuter journeys, some off-peak return tickets on long-distance routes and flexible tickets for journeys in major cities.
Rail operators have set increases in unregulated fares, although these are likely to be very close to the changes in regulated ticket prices, as their decisions are heavily influenced by governments under contracts introduced due to the coronavirus pandemic.
The Scottish and Welsh governments have not announced their rail tariff plans for 2024.
Tariffs in Northern Ireland are set by the operator Translink.
https://www.standard.co.uk/business/business-news/rail-fares-economic-figure-which-could-determine-price-rises-to-be-announced-b1106363.html Rail fares: Economic indicator that could influence the price increases to be announced
