# Thursday, August 19, 2010

If this article is correct rail fares could be set to rise by 10%. The news comes after the publication of July's inflation data. Under current rules train operators are allowed to raise fares by one percent more than the retail prices index (RPI). This stood at 4.8% last month suggesting that fare increases of 5.8% are likely in 2011. Passenger groups, however, are warning that the government is likely to change these rules which would allow companies to raise prices by significantly more. This could in effect mean they could raise some fares by as much as 5% over RPI a rise of nearly 10% in total. Passenger groups point out that passengers in Britain already pay some of the highest fares in Europe. They are calling train operators to show restraint in price rises especially as wage rises are currently lagging behind inflation meaning many customers could struggle to find the extra money for their morning commute.