The NSW government says its decision to increase Sydney public transport fares by more than double the rate of inflation is essential to make up lost ground.
NSW Treasury figures released yesterday forecast a two per cent increase in Sydney's consumer price index during the current financial year.
However, City Rail and bus fares will go up by an average of 5.4 per cent from January 2, the first rise in public transport costs since April 2010.
Transport Minister Gladys Berejiklian says the increase is necessary to cover the previous Labor government's decision earlier this year not to raise fares in 2011 to offset inflation.
"The previous government in January, we believe irresponsibly, chose not to pass on the CPI increases - that's why we've had to put on the CPI increases for last year and this year," she told reporters in Sydney.