MTR fare hike lowered

The MTR Corporation has lowered its fare rise proposal announced last month, from 2.3% to 2.2%.

The company made the revision after the Census & Statistics Department today announced the new year-on-year change in the Composite Consumer Price Index for December 2010.
 
Using the new Composite Consumer Price Index figure of +2.9% and the Nominal Wage Index (Transportation) figure of +1.5%, the overall fare adjustment rate of +2.2% was derived for 2011, which will be used in June when the fare-adjustment mechanism is implemented.
 
MTR fares are reviewed once a year under the mechanism. The overall adjustment rate is calculated by a set formula based on the year-on-year percentage changes in the Composite Consumer Price Index and Nominal Wage Index (Transportation) for the month of December of the preceding year as published by the department, with each factor accounting for 50%. The formula also includes a pre-determined productivity factor which is 0% before 2013 and 0.1% from 2013.
 
The overall fare-adjustment rate represents the weighted average figure by which all adjustments to individual fares taken together shall equal to. The MTRC is calculating actual changes to individual fares and a formal announcement will be made after completion of administrative procedures, including the submission of independent third-party certificates to the Government to certify compliance with the fare mechanism.