Labour leader Chris Hipkins said the party's fare cap policy, announced last week, would put money back into New Zealanders' pockets.

Analysis - Labour appears to have underestimated the cost of its public transport fare cap policy, with economists identifying several apparent errors in the party's workings.

The opposition party last week estimated a net cost of $65 million a year for its promise to cap fares at $20 a week in Auckland, Wellington and Christchurch and $10 everywhere else.

But economists Sam Warburton and Brad Olsen say a more realistic figure would be somewhere between $91m and $112m.

The pair stress Labour's calculations seem to be a genuine and reasonable attempt to cost the policy, rather than a sign of incompetence or an effort to mislead voters.