The fare rise from January 2 2019 comes after widespread complaints due to the disruption caused by the introduction of a new rail timetable this year.
It compares to a rise of 3.4 per cent in January 2018, which was described as ‘a kick in the teeth’at the time by the RMT Union.
The Rail Delivery Group, which works between train companies and Network Rail, has said the price increase is below July’s inflation rate (3.2 per cent) for the second year running and will help investment.
Paul Plummer, chief executive of the Rail Delivery Group, said: “Nobody wants to pay more to travel, especially those who experienced significant disruption earlier this year.
“Money from fares is underpinning the improvements to the railway that passengers want and which ultimately help boost the wider economy.
“That means more seats, extra services and better connections right across the country.”
The RDG has said investments planned include 7,000 new carriages, supporting 6,400 extra services a week by 2021, meaning more seats on more comfortable, reliable and frequent trains.
Governments directly influence changes to around 45 per cent of fares which are regulated, including season tickets, the group added.
It follows a major consultation this summer to gather views on how to make the fares system simpler and easier for customers that had almost 20,000 responses.
Feedback is expected from the consultation to develop proposals to government for reform.