Jersey taxi fares to rise by 2.5% from 30 July
Between March 2011 and March 2012 the cost of living increased by 5%.
Transport Minister Deputy Kevin Lewis said he was pleased the rank taxi rise had been limited with drivers absorbing the rest.
He said he thought a good compromise had been reached which was fair to the public and drivers who he said had experienced rising costs over the past year.
Transport and Technical Services does not control the fares charged by private hire cab companies.
The firms that run these services are free to set their own charges.