The UK’s inflation rate for July is expected to remain unchanged at 0.5% when official figures are released by the Office for National Statistics later this morning.
Although the price of some goods may have been affected following the EU referendum, some economists believe it is too early for the data to show the full impact of Brexit.
Today’s Retail Price Index measure of inflation will prove significant as it will be used by the Government to determine how much train fares should rise by next year, in what could be painful news for season ticket holders already forking out thousands of pounds annually.
The Consumer Price Index for June rose to a higher-than-expected 0.5%, with rising air fares and petrol prices both contributing to an overall increase in the cost of living.
Chris Hare, an economist with Investec, said the fall in sterling seen following the Brexit vote could have pushed up the cost of filling up at the pump even further in July.
As the Government gears up for an announcement on train fares, new analysis suggests that ticket prices have increased at double the speed of wages since 2010.
The TUC says passengers are paying more and getting even less – with unstaffed stations and overcrowded trains amounting to an increasingly poor service for commuters.
The union, in conjunction with the Action for Rail campaign, also claimed that dividends paid to the shareholders of private train companies have increased by 21% in the last year.
Meanwhile, the Campaign for Better Transport is calling on train operating companies and the Government to introduce flexible season tickets as a “matter of urgency”.
It believes such a move could save an estimated 8.5 million people who work from home or in part-time roles thousands of pounds, and encourage more train travel.