Australian household spending picked up sharply in March 2026, rising 1.6%, following smaller increases in February and January. Over the year, spending remained elevated in nominal terms, up 6.3% compared with March 2025.

The main driver of March’s jump was a 5.1% surge in transport spending, as fuel prices spiked in response to conflict in the Middle East. Higher fuel costs led motorists to make smaller, more frequent refuelling trips, while some households shifted toward public transportation, boosting spending in this category.

Food spending rose 1.7%, reflecting both higher food prices and some precautionary stockpiling amid concerns about potential supply‑chain disruptions. Spending on hotels, cafes and restaurants declined 0.9% in March with declines across all states. 

Meanwhile, new ABS experimental data combining household spending with monthly CPI shows that, despite the higher dollar spend on fuel, the volume of fuel purchased fell 1.3%, driven by a sharp 32.8% rise in fuel prices during the month.