Rail fares will rise by an average of 1.1 percent in January, below the rate of inflation and the lowest increase since privatisation, the train operating body said on Monday. The Association of Train Operating Companies (ATOC) said the fare increase will see the average price paid for a single rail journey rising by 6p to 5.11 pounds. But unions said fares, among some of the highest in Europe, should be frozen or cut, while a passenger group said the cost of unregulated routes will rise significantly above inflation.
Inflation is expected to rise sharply to above 2 percent in the next few months, before easing back below the central bank's 2 percent target to about 1.6 percent in the medium term, Bank of England governor Mervyn King said last week. Privatisation of British Rail began under the Conservative government in 1993 amid opposition from the Labour Party. Passenger Focus, an independent passenger watchdog, said commuters would welcome the "slight reduction" in most season ticket prices. But it warned: "Many unregulated fares will continue to soar above inflation as the average figures published will mask steep rises on individual routes."