MTR announced today (March 26) that under the Fare Adjustment Mechanism, fares will be increased by 3.09% this year, which is expected to take effect in June.
Data integral to the MTR's fare formula have been gradually released, with the notable exception of the fourth quarter's nominal wage index for the transport sector. If the previous quarter's 6% increase is incorporated into the calculations, along with December's inflation rate of 2.4%, and after deducting a 0.6 percentage point productivity factor, as well as a 1.85 percentage point increment previously deferred, the outcome suggests an adjustment of 5.45%.
However, the formula includes a cap pegged to the median household income change in the last quarter, which stands at 3.09%. This means that the probable fare increase for the MTR this year could be exactly 3.09%, effective from June.
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