Train fare rise 2015: Rail fares will go up by at least 3.5pc
Rail fares are set to rise by at least 3.5 per cent next year pegged against July's inflation figures announced this morning.
The 3.5 per cent increase is capped at one per cent above RPI which fell to 2.5 per cent in July- good news for travellers but bad news for train operators.
However, commuters could face fare rises of up to 5.5 per cent from some operators, as the so-called “flex” rule allows train companies to add an additional two per cent hike on to some of its routes, many of them popular commuter journeys.
Overall since 2010, fares have risen cumulatively by 23 per cent compared to wage growth of 7.9 per cent over the same period.
In the last 10 years since fare rises have been pegged to RPI, they have risen by 50 per cent, compared with wage growth of 30 per cent.
However, considering the still-large gap between wage growth and rail price hikes, Osborne could step away from the standard RPI plus one per cent formula, as he did last year when rail users were offered respite with rises set at just inflation .
Commuters and train operators will await George Osborne’s Autumn Statement for another potential freeze or even change to the CPI measure of inflation, or for fares to be made RPI minus one per cent ahead of next year’s election, the Guardian reports.