Higher inflation figures mean higher rail fares

The latest inflation figures released by the Office of National Statistics show the Consumer Prices Index has increased to 2.6%, up from 2.4% last month, and the Retail Prices Index has also increased from 2.8% to 3.2%.

Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “All eyes were on the retail prices measure of inflation as it is this figure that will be used to calculate rail fare increases for the coming year.

“Whilst the figure is much lower than the recent peak of 5.6%, typical rail fares will now increase by 6.2% adding to the burden faced by commuters who have already seen their incomes squeezed.

“This reinforces our message that infrastructure improvements should have been funded through the Bank of England to stimulate domestic growth, as placing the burden on consumers at this time is likely to further damage demand. Though we’re focusing on rail price increases this month, we should not lose sight of the fact that inflation is not continuing its recent falls and is unlikely to fall to below 2% as expected by the Bank of England only last week.”