2140 GMT - The sharp rise in gasoline and diesel fuel prices in Australia since the start of the Middle East conflict equates to a 20 basis points rise in interest rates for most households, estimates Jefferies. Fuel prices in March so far are some 11% higher than the average of 2025. It's happening in parallel to Australia's central bank raising the official cash rate twice this year so far. "On an annualized basis, assuming spot diesel and gasoline prices prevail, we estimate an additional cost of A$1,014 per household from higher fuel price relative to 2025," analyst Michael Simotas says. Discretionary retail sales started to soften in late 2025. Jefferies expects trends to deteriorate further. It notes consumer sentiment is already at the lowest level since 2020 and more rate hikes are expected. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 18, 2026 17:40 ET (21:40 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.