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

The March gains followed a rise of 0.3 percent in February and a rise of 0.2 percent in January, and were up 6.3 percent 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 percent 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 vehicles.

Food spending rose 1.7 percent, 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 percent in March, driven by the 32.8 percent increase in monthly fuel prices, statistics showed.

Household spending volumes rose 0.7 percent 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 percent from a year earlier, the strongest annual increase since mid-2023, the ABS said.■