UK Markets close in 6 hrs 54 mins
  • FTSE 100

    7,486.53
    +115.07 (+1.56%)
     
  • FTSE 250

    21,965.56
    +319.85 (+1.48%)
     
  • AIM

    1,094.42
    +10.21 (+0.94%)
     
  • GBP/EUR

    1.1961
    +0.0015 (+0.13%)
     
  • GBP/USD

    1.3498
    -0.0008 (-0.0580%)
     
  • BTC-GBP

    27,996.64
    +929.82 (+3.44%)
     
  • CMC Crypto 200

    857.72
    +47.12 (+5.81%)
     
  • S&P 500

    4,356.45
    -53.68 (-1.22%)
     
  • DOW

    34,297.73
    -66.77 (-0.19%)
     
  • CRUDE OIL

    85.95
    +0.35 (+0.41%)
     
  • GOLD FUTURES

    1,845.70
    -6.80 (-0.37%)
     
  • NIKKEI 225

    27,011.33
    -120.01 (-0.44%)
     
  • HANG SENG

    24,289.90
    +46.29 (+0.19%)
     
  • DAX

    15,428.57
    +304.70 (+2.01%)
     
  • CAC 40

    6,958.67
    +120.71 (+1.77%)
     

UK rail fares to see 3.8% inflation-linked rise in March

·2-min read
Trains pull away from London Bridge railway station in London

LONDON (Reuters) - Many British rail fares will rise by 3.8% from March, the government announced on Friday, reflecting a broader increase in the cost of living as inflation heads towards a 30-year high.

Price increases for around 40% of British rail fares are set by the government, affecting the cost of commuter season tickets, some long-distance off-peak return travel and peak travel near major cities.

Normally fares rise each January by 1 percentage point above the rate of retail price inflation in the previous July. RPI is a long-running measure but the Office for National Statistics says it overstates the true rate of price increases. The more accurate consumer price inflation measure was 2.0% in July.

For 2022 the government will limit the increase to July's rate of RPI, which was 3.8%, and not apply the 1 percentage point extra increase. It will also delay the increase until March, as it did this year, when fares rose by 2.6%.

"Capping rail fares in line with inflation while tying it to the July RPI strikes a fair balance, ensuring we can continue to invest record amounts into a more modern, reliable railway, ease the burden on taxpayers and protect passengers from the highest RPI in years," rail minister Chris Heaton-Harris said.

Britain's transport ministry said it had spent 14 billion pounds ($19 billion) subsidising rail services during the pandemic, when passenger numbers slumped.

The Bank of England forecast on Thursday that consumer price inflation would peak at a 30-year high of around 6% in April, after hitting a 10-year high of 5.1% last month.

Rail fares could also be set for a big increase in 2023, as RPI already rose to a 30-year high of 7.1% this November.

($1 = 0.7523 pounds)

(Reporting by David Milliken; editing by James Davey)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting