Australia spending holds up as war drives oil spike, CBA says
The figures show Australia’s economy was on a strong footing before the central bank began raising interest rates
Published Wed, Apr 1, 2026 · 02:51 PM
[SYDNEY] Australian consumer spending has held up in the face of the Middle East conflict and the resulting surge in oil prices, the nation’s top lender Commonwealth Bank of Australia (CBA) said.
Total spending on CBA cards held up in nominal terms in the week ending March 27, in part due to higher fuel expenditure, the bank said in a research note on Wednesday (Apr 1). Spending on transport as a proportion of total consumption increased sharply in recent weeks, it added.
“The Easter weekend and school holidays are coming up, where spending typically spikes. The next few weeks will be a key watch point for us,” economists led by Belinda Allen said.
She pointed out that household goods spending has been soft this year so far. “This is potentially an early sign that discretionary spending has been softening in 2026.”
Weekly salary transaction data through March 27 continued to show “decent income growth” flowing through to CBA bank accounts, Allen added.
The figures show Australia’s economy was on a strong footing before the central bank began raising interest rates in an effort to tame stubborn inflation. The ongoing Middle East conflict is complicating the task for the Reserve Bank which is expected to deliver a third consecutive hike in May, taking the cash rate to 4.35 per cent, from 4.1 per cent now. BLOOMBERG
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