The latest shows that even as Australia’s overall inflation rate eased slightly in the March quarter, transport cost rises accelerated.
The report, released by Australia’s peak motoring body, shows the typical Australian household’s transport costs rose by almost 7.4 per cent in the March 2023 quarter. This is much higher than the consumer price index increase of 1.4 per cent over the same period.
The report shows this rise was largely driven by the impact of rising car prices and higher interest rates on car loan payments.
In the March quarter, the typical Australian household’s annualised car loan payments increased by $1,424 – or $27.40 a week. Costs for servicing and tyres also rose across the country.
For the first time, weekly transport costs exceeded $500 in Australia’s three largest cities, and more than $395 in three of the report’s six benchmarked regional centres – Alice Springs, Geelong, and Bunbury.
In the March quarter, the typical Australian household spent 15.8 per cent of its income on transport, up from 15.1 per cent in the December quarter.
AAA Managing Director Michael Bradley said: “The cumulative effect of continually rising transport costs is a heavy burden at a time when Australians are feeling cost of living pressures across the board.
“Transport is a significant and unavoidable expense for households and is one of the key drivers of inflation. Governments at all levels must consider these cost pressures when formulating policy.”
