Benchmark

How Commuters and Graduates Are Paying the Price for Brexit

Rail fare increases are linked to RPI that was the highest since 2011 – but so are some pension payments

Rail passengers stand and wait for a train on a platform at Clapham Junction railway station in London, U.K., on Tuesday, Sept. 18, 2012. U.K. rail fares will jump as much as 6.2 percent in January, based on inflation figures released last month, with increments of more than 10 percent possible if train companies vary price changes, lobby group Passenger Focus said.Photographer: Simon Dawson

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By Lucy Meakin

August 15, 2017 at 8:19 AM EDT

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At least one type of inequality in the U.K. looks set to worsen further.

Even though the headline measure of inflation held steady last month, it still means prices are rising faster than workers’ average wages. Commuters, as well as those paying off student loans, are set to bear the brunt of soaring costs linked to retail-price increases. Meanwhile pensioners whose payments are also based on the retail index, will benefit most.

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Before it’s here, it’s on the Bloomberg Terminal

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