Mid-East conflict burns fuel and house budgets
Australians have been spending more of fuel and groceries and less on life’s little luxuries as fighting continued to rage in Iran, new data has shown.
THE Middle East conflict has had a further marked effect on Australia’s cost of living, according to new data.
Figures released on May 5 by the Australian Bureau of Statistics (ABS) show household spending rose 1.6 percent in March.
This follows a 0.3 percent rise in February and a 0.2 percent rise in January.
Household spending remained high over the year in nominal terms, up 6.3 percent compared to March 2025.
Tom Lay, ABS head of business statistics, said: “Household spending rose strongly in March, driven by a 5.1 percent rise in transport costs as fuel prices climbed in response to the conflict in the Middle East.”
Fuel prices spiked during the first week of March, with prices peaking at the end of March as motorists made smaller, more frequent trips to the petrol station.
Strength in public transport spending also contributed to the rise in household spending, likely reflecting some households switching away from private vehicles in response to rising fuel costs.
Food spending was also strong, rising 1.7 percent. The rise reflects higher food prices and some households engaging in precautionary stockpiling.
