BAROMETER. For the first time this year, August saw road transport prices fall, according to the Upply Freight Index. This fall of 0.7%, caused by the drop in spot prices, raises questions about the future of the transport economy.
In August 2022, inflation in the euro area reached a new all-time high of 9.1%. In France, the rise in consumer prices slowed slightly, from 6.1% in July to 5.8% in August, according to the INSEE. However, according to economist Marc Touati, it is the calm before the storm. "The leading indicator of inflation, that is to say the annual shift in producer prices, has just reached a new all-time high of 25.9%," says Marc Touati in an article published in the French Magazine Capital.
Added to this are commodity prices, which are rising again after a few weeks of lull. August is usually a month of listlessness: production slows down or even stops in many sectors of activity, to pick up again in September. This year, the avalanche of bad news is weighing heavily on the post-holiday period.
First fall in transport prices
In this context, road freight transport prices recorded their first decline in 2022, with a decrease of 0.7% in August compared to July, according to the Upply Freight Index. The well-oiled machine that pushed prices up to unprecedented levels seems to have ground to a halt in August.
The drop in diesel fuel in July (- 5.9%), which is only felt the following month given the way the pass-through system works, is certainly an important factor in the decline observed in August. However, seasonality has once again played a role. The summer break, which is particularly noticeable in August, has the consequence of a lower need for transport and so lowering prices.
Source: Upply Freight Index – Road France
The average transport price in France in August was €1.681 per kilometre driven.