Rail passengers are set to benefit from lower rail fares from January 2010 following today's announcement that the Retail Price Index (RPI) stood at -1.4% in July this year.
On the majority of rail journeys fares are regulated by the Government. Increases to most of those fares are capped at RPI+1% with the changes implemented in January, based on the previous July's RPI figure.
The RPI figure published by the Office for National Statistics today means that next January most regulated fares will have to fall.
The Government has also taken away the flexibility for operators to raise individual regulated fares by up to 5% above the national fare change, protecting passengers from unduly steep rises in regulated fares next year.
Transport Secretary Andrew Adonis said:
“Today’s RPI figure of -1.4% means that the majority of regulated rail fares, including most commuter fares, will fall in January.
“This is good news. For the first time in a generation passengers across the country will see their fares fall. Drops in fares should encourage more people to travel by train, which is good for the economy and the environment.
“In addition I am removing train operators' ability to increase individual fares next year by up to 5% above the national fare change. This means most regulated fares will fall in line with the national fare change, which will be welcomed by passengers."