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| Rail fares rises set to be revealed | Rail fares rises set to be revealed |
| (35 minutes later) | |
| Rail fare increases from next January are set to be revealed, with some commuters braced for rises of more than double the rate of inflation. | |
| The latest Retail Price Index inflation figure - expected to remain at 2.8% - will be used to calculate the increase. | |
| In England fares will rise by inflation plus 3%, while in Scotland they will go up by inflation plus 1%. Wales has yet to set a figure for its increase. | |
| The extra money is helping to fund huge investment across the network. | The extra money is helping to fund huge investment across the network. |
| BBC transport correspondent Richard Westcott says passengers and taxpayers used to split the cost of running the railways, with both sides paying about half each, but successive ministers have cut the amount of government funding and that has resulted in regular fare rises. | BBC transport correspondent Richard Westcott says passengers and taxpayers used to split the cost of running the railways, with both sides paying about half each, but successive ministers have cut the amount of government funding and that has resulted in regular fare rises. |
| The latest rise will mean fares in England will have gone up by more than inflation for 10 successive years, resulting in some of the most expensive train journeys in Europe, our correspondent added. | The latest rise will mean fares in England will have gone up by more than inflation for 10 successive years, resulting in some of the most expensive train journeys in Europe, our correspondent added. |
| The planned rise for fares in England is only an average. Train companies are allowed to raise some fares by as much as 11%, as long as they cut ticket prices elsewhere. | The planned rise for fares in England is only an average. Train companies are allowed to raise some fares by as much as 11%, as long as they cut ticket prices elsewhere. |
| Stephen Joseph from passengers' group the Campaign for Better Transport said rail fares could rise three times faster than salaries if the government sticks to its policy. | Stephen Joseph from passengers' group the Campaign for Better Transport said rail fares could rise three times faster than salaries if the government sticks to its policy. |
| "With the economy flatlining, this is untenable. The government knows they can't continue to hit commuters - that's why they've postponed the fuel duty increase," he said. | "With the economy flatlining, this is untenable. The government knows they can't continue to hit commuters - that's why they've postponed the fuel duty increase," he said. |
| "Now they need to give the same help to rail users." | "Now they need to give the same help to rail users." |
| The group said commuters across the country routinely spend between 5% and 10% of their salary getting to work. In some towns in the South East, it said they spent up to 15%. | The group said commuters across the country routinely spend between 5% and 10% of their salary getting to work. In some towns in the South East, it said they spent up to 15%. |
| Olympics bounce? | Olympics bounce? |
| Forecasts for July's Retail Price Index (RPI) inflation measure suggest it will remain unchanged from 2.8%, or dip slightly. | |
| The rate of inflation has fallen sharply from September last year, when the RPI stood at 5.6%. | The rate of inflation has fallen sharply from September last year, when the RPI stood at 5.6%. |
| This is partly due to falling petrol prices, but also a slowdown in the increase in the price of clothes and food. | This is partly due to falling petrol prices, but also a slowdown in the increase in the price of clothes and food. |
| The slowing of inflation means it is heading back towards the Bank of England's target rate of 2%. This means the Bank has more leeway when considering further stimulus measures to boost economic growth. | The slowing of inflation means it is heading back towards the Bank of England's target rate of 2%. This means the Bank has more leeway when considering further stimulus measures to boost economic growth. |
| Last month, the Bank said it would pump a further £50bn into the economy over the next four months through quantitative easing (QE), taking the total size of the programme to £375bn. | Last month, the Bank said it would pump a further £50bn into the economy over the next four months through quantitative easing (QE), taking the total size of the programme to £375bn. |
| But earlier this month, the Bank decided not to pump more money into the economy, despite figures released at the end of July showing that the UK economy contracted by 0.7% between April and June. | But earlier this month, the Bank decided not to pump more money into the economy, despite figures released at the end of July showing that the UK economy contracted by 0.7% between April and June. |
| Some economists expect the economy to bounce back in the current quarter, helped in part by a short-term boost from the Olympic games. | Some economists expect the economy to bounce back in the current quarter, helped in part by a short-term boost from the Olympic games. |
| This, they say, could come from a small uplift in consumer spending and from ticket sales, which will be recorded in the third quarter. | This, they say, could come from a small uplift in consumer spending and from ticket sales, which will be recorded in the third quarter. |