Rising business costs drove a surprise increase in inflation in July – and haulage firms remain concerned about what will be unveiled in the autumn Budget, according to the RHA.
Figures showed the annual rate climbed from 3.6% in June to 3.8% - the highest level since January 2024.
The Office for National Statistics said most of the increase was down to a jump in air fares; petrol prices also added 0.1% to inflation compared with last year.
RHA MD Richard Smith described the rise as disappointing, but that it was “undoubtedly” caused by soaring costs across all sectors and that hauliers were already feeling the squeeze.
“For many operating on razor-thin margins, additional cost considerations such as national insurance contributions have presented real challenges at a time when daily running costs remain high,” he said.
“Take fuel prices as a prime example – we’ve witnessed recent increases that stem, in no small part, from escalating oil costs.
“For many businesses, fuel represents a significant portion of their operating expenses, creating a direct impact on consumer pricing as these cost increases inevitably get passed along the supply chain.”
Smith said with speculation rife about further tax rises ahead, companies were being understandably cautious about spending: “Ultimately, companies are caught between rising costs and the need to remain competitive,” he added.
“Our sector remains key to the economic health of this country.
“Looking ahead to the budget, and if we’re serious about delivering longer-term economic recovery and growth, decision-makers must recognise that the businesses and sectors who can help make this happen will need the room to breathe.”
