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On Jan. 1, Caltrain will implement a 5.6 percent fare increase, raising one-way ticket prices 25 cents.

Caltrain officials expect the increase to generate an additional $600,000 in revenue during fiscal-year 2006’s second half, or $1.2 million annually.

The price hike is the second phase of a fare increase approved by the board last spring to address the commuter railroad’s multi-million-dollar budget shortfall. In July, Caltrain implemented a 17.5 percent fare increase.