Rail fares ‘could drop by 1%’

Some rail fares could actually come down by 1% next year, according to city analysts.

Regulated fares, The Guardian reports, are not allowed to rise by more than 1% more than inflation, with annual fare rises ‘pegged at’ the Retail Prices Index (RPI) measure of inflation in the July of the previous year.

Given the prospect of deflation in the near future, this could see some ticket prices drop next January: investment bank Investec predicts that RPI could hit -2.1% this July.

“Any decrease in ticket prices would be welcomed by passengers,” said a debt management expert for Gregory Pennington. “Many people have no choice but to travel by train, and buying tickets can take up a substantial portion of their income.

“Whenever an expense unexpectedly drops in price, whether it’s a mortgage or a train ticket, this can give people with financial problems an opportunity to overpay some of their debts. Over time, even a modest monthly overpayment can make a difference to a credit card debt (for example), saving them money in interest payments as well as reducing their overall debt.”

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