Australia Household Spending Growth Accelerates

(RTTNews) - Australia's household spending increased at a faster pace in March, driven by higher fuel prices, the Australian Bureau of Statistics said Tuesday.

Household spending increased 1.6 percent on a monthly basis, faster than the 0.3 percent rise posted in February. A similar faster growth was last seen in January 2024.

"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," ABS head of business statistics Tom Lay, said.

Data showed that fuel prices increased during the first week of March, with prices hitting peak at the end of March as motorists made smaller, more frequent trips to the petrol station. Public transport spending growth also contributed to the increase in household spending.

Food spending rose 1.7 percent, reflecting higher food prices and some households engaging in precautionary stockpiling in response to concerns for further potential disruptions to global supply chains.

On a yearly basis, household spending growth increased to 6.3 percent from 4.7 percent in February.