Rail fares set to rise by 6.2%

Commuters in England face 6.2% rise in average train fares after a shock increase in the Retail Prices Index measure of inflation. Cars, air fares, clothing and housing are being blamed for the surprise rise in the Consumer Prices Index of inflation.

Latest ITV News reports

Waterloo Station protest against rail fare hike

Union members and transport campaigners gathered outside Waterloo Station in London today to protest against likely rises to rail fares in the new year.

Union members and transport campaigners carried placards and banners Credit: ITV News
Unions claim that "efficiency savings" could result in the loss of 20,000 rail jobs Credit: ITV News
Average rail fares could rise by 6.2% in England Credit: ITV News

Second-guessing the economy is a risky business

by - Former Business Editor

Just last week the Bank of England sounded extremely confident that inflation would continue its gentle downward trend.

That theory has been contradicted by today's figures for July which show that both CPI and RPI inflation rose.

The increases have been driven by the costs of transport and clothing and are just another reminder of how unpredictable the economy is.

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Govt will face 'more pressure' to reverse rail fare policy

Stephen Joseph of the Campaign for Better Transport said that today's inflation rises will put the Government under more pressure to lower the rate at which it allows train companies to increase their average prices.

This higher-than-expected inflation figure means that rail fares will rise by more than 6% if the Government proceeds with its policy. There will be even more pressure on the Government to reverse its policy, and bring fares down.

– Stephen Joseph, Campaign for Better Transport

ONS: Air fares driving inflation increases

July saw a dramatic rise in the cost of air fares Credit: Stephen Pond/PA Wire

The Office for National Statistics (ONS) said that rising air fares are responsible for the rise in inflation rates announced today.

Air fares, which are highly seasonal, rose 21.7% between June and July - the largest increase since 2004. Travel companies have reported an increase in demand for foreign holidays as people look to escape the wet start to the British summer.

July also saw the record smallest monthly fall in prices in footwear and clothing prices after retailers brought forward their summer sales to June.

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