Rail fares in England are set to rise by 4.9% in March, following the government’s decision to tackle the planned increase.
Although this decision aims to mitigate the impact, it is expected that ticket costs will still outpace inflation rates. The government opted for a cap on regulated fares instead of aligning them with July’s retail prices index (RPI), a departure from previous years.
In August, the government chose not to use the RPI reading of 9%, avoiding steep fare increases amid economic inflation slowdowns. The fare increase, initially scheduled for an earlier date, was postponed to March 3. Despite the cap, critics, including Labour, labeled the fare hike a “brutal bumper rise.”
This marks the second consecutive year the government has ignored the RPI figure due to pandemic disruption and low interest rates. The March 2023 increase could result in a price hike if Bank of England predictions of further inflation declines hold true.
Key Words:
Source: The Guardian