Department for Transport said Tuesday that rail passengers are set to benefit from lower rail fares from January 2010 following Tuesday's announcement that the Retail Price Index (RPI) stood at -1.4% in July this year.

MAIN FACTS:

-On the majority of rail journeys, fares are regulated by the Government. Increases to most of those fares are capped at RPI+1% with the changes implemented in January, based on the previous July's RPI figure.

-The RPI figure published by the Office for National Statistics Tuesday means that next January most regulated fares will have to fall.

-The Government has also taken away the flexibility for operators to raise individual regulated fares by up to 5% above the national fare change, protecting passengers from unduly steep rises in regulated fares next year.

-Transport Secretary Andrew Adonis said: "Tuesday's RPI figure of -1.4% means that the majority of regulated rail fares, including most commuter fares, will fall in January.

-"In addition I am removing train operators' ability to increase individual fares next year by up to 5% above the national fare change. This means most regulated fares will fall in line with the national fare change", Adonis said.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com