When forming base cost estimates for transport options, practitioners should apply realistic assumptions about changes in real costs i.e. above the rate of growth in general prices across the economy. For example, the inflation rates relevant to the delivery of many of the current transport schemes in Scotland (all modes) are currently higher than the general rise in prices across the economy. It is not practical to identify general inflation rates that would apply generally to all transport options so practitioners are advised that any assumptions should be based on the best information on current and forecast inflation from industry sources appropriate to their scheme. These assumptions and the sources of evidence should be clearly stated in the appraisal documentation.
