MTR fares crept up another 3.6%

It was based on inflation and wage increase.

According to Barclays, after the MTR fares were raised by 2.7% in June last year, the company will increase the fares by another 3.6% in coming June, based on the prevailing fare adjustment mechanism.

The increase figure was calculated by taking the average of the 4.3% inflation rate and the 4.1% wage rise in the transport sector last year.

Here’s more from Barclays:

A productivity factor of 0.6 is then deducted, taking the fare adjustment to 3.6%. According to the fare adjustment mechanism, any fare rise is capped at the rate of increase in the median household income.

However, as household income was up 6.16% y/y in 4Q13, this leaves the fare rise at 3.6%.

The MTR will also allocate HK$152.5mn for a 10% discounts on every second trip a passenger makes on the same day.