Australian Households Spend More As Fuel Prices Jump

CANBERRA, May 5 (Bernama-Xinhua) -- Australia's household spending rose 1.6 per cent in March, driven by surging transport costs linked to higher fuel prices amid the Middle East conflict, Xinhua reported, citing official data on Tuesday.

The March gains followed a rise of 0.3 per cent in February and a rise of 0.2 per cent in January, and were up 6.3 per cent compared to March 2025 in nominal terms, said a release of the Australian Bureau of Statistics (ABS).

"Household spending rose strongly in March, driven by a 5.1 per cent rise in transport costs as fuel prices climbed in response to the conflict in the Middle East," said Tom Lay, ABS head of business statistics.

Fuel prices surged early in the month and peaked toward the end of March, prompting motorists to make smaller, more frequent refueling trips, the ABS said, adding that higher public transport use suggested some households shifted away from private vehicle.

Food spending rose 1.7 per cent, reflecting higher prices and precautionary stockpiling amid concerns over further potential global supply disruptions, it said.

Volumes of fuel purchased by households fell 1.3 per cent in March, driven by the 32.8 per cent increase in monthly fuel prices, statistics showed.

Household spending volumes rose 0.7 per cent in the March quarter, the sixth straight quarterly increase, driven by non-discretionary categories such as health and food, Lay said.

Household spending volumes rose 2.8 per cent from a year earlier, the strongest annual increase since mid-2023, the ABS said.

-- BERNAMA-XINHUA