I have reported many times that this is the worst possible scenario. High unemployment, sinking currency, and Keynesian Fools trying to lift of the prices as if it would make things any better.
While some say that Britain is the worst place to live in Europe, London having the world's most expensive public transport already back in 2007 has gotten a lot more expensive in 2008 and 2009 and is ready to get yet another hike price, and not a tiny one:
Oct. 15 (Bloomberg) -- London Underground’s fares will rise by an average of 3.9 percent in January, while the cost of riding the city’s buses will increase by 12.7 percent, Mayor Boris Johnson said. A seven-day bus pass will rise to 16.60 pounds from 13.80 pounds.
The city’s traffic-congestion charge also will be increased next year, to 9 pounds from 8 pounds, the mayor said. London will introduce a new automated system for collecting the congestion charge. The fee will increase to 10 pounds for drivers who don’t use the new payment method, Johnson said.
Revenue on the city-owned London Underground is falling as passenger traffic declines because of higher unemployment and the economic slowdown. The railway carries around 3 million passengers each weekday.[...]
London Underground’s cash fares are already among the world’s highest. A single ride in central London is 4 pounds ($6.44), compared with New York City’s $2.25. The cheapest single fares with a pre-paid Oyster card in central London range from 1.60 pounds to 2.20 pounds.[...]
Fares rose by 6 percent on average this year. [...]