-- New Zealand's fuel spending jumped a massive 15% month-on-month in March as prices surged, siphoning a large amount of cash from households' wallets and weighing on spending in other areas, said Westpac in a Monday report.
The bank also reported a 0.7% rise in grocery purchases with households stocking up on essentials, as the Middle East conflict stoked concerns about shortages and cost increases.
The bank said that cost-of-living pressures, combined with nervousness about the economic outlook, have seen many households winding back their discretionary spending.
Westpac said it saw a 2% decrease in spending on takeaways and in restaurants as dining out is often the first thing households cut when fuel or other living costs rise, and it could be a tough few months for the hospitality sector.
The bank added that spending levels are still above those seen in March 2025, but expects spending growth to remain muted over the coming months.
Westpac believes that there is a long way to go before the resulting disruptions to fuel supply and global supply chains will dissipate.