<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The average Australian household with a </span><a href="https://www.9news.com.au/mortgages" rel="" target="" title=""><span>mortgage</span></a><span> and at least one car is almost $75 per week worse off than they were six weeks ago, in a sudden hit to the hip pocket that experts warn is unlikely to improve anytime soon.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A surprise </span><a href="https://www.9news.com.au/finance/inflation-australia-january-2026-cpi-interest-rates-implications/6b382a95-929e-4fda-9d88-1df3ed7cc0b0" rel="" target="" title=" jump in inflation in January"><span>jump in inflation in January</span></a><span> further fuelled by </span><a href="https://www.9news.com.au/world/us-israel-iran-war-uae-closes-airspace-as-precaution-israel-widens-ground-operations-in-lebanon/925aad39-fb70-4131-bb45-0a324d3466ed" rel="" target="" title="the widening conflict in the Middle East"><span>the widening conflict in the Middle East</span></a><span> has prompted the Reserve Bank of Australia (RBA) to implement two consecutive interest rate hikes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The cash rate now sits at 4.10 per cent, just 0.25 per cent below 2024 highs.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/australia-interest-rates-rba-banks-response/e91beb9a-3be4-491a-9b0c-10869b6878d0" rel="" target="" title="Major banks move to pass on rate hikes to mortgage holders"><strong><span>Major banks move to pass on rate hikes to mortgage holders</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That equates to hundreds more in monthly repayments for mortgage holders, while rising inflation and skyrocketing fuel prices risk rolling into wider price hikes at the checkout.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers has </span><a href="https://www.9news.com.au/national/aussies-pockets-to-suffer-as-treasuer-warns-inflation-to-near-5-per-cent/d9d0398e-1c1a-4787-960f-793b158e9780" rel="" target="" title="warned already-high inflation may climb towards five per cent"><span>warned already-high inflation may climb towards five per cent</span></a><span>, should the Iran war and blockade on the Strait of Hormuz drag on.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Here is how the latest cost spikes stack up for the average household - and what could be still to come in 2026.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/australian-families-cost-of-living-fuel-and-interest-rate-hikes-hit-mortgage-holders/9dfdd7b0-be22-4af1-b04f-d50702c5b947" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Mortgage repayments</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Based on the last two interest rate hikes, a family with the average national mortgage of $700,000 with 25 years remaining will have to find an extra $211 each month for their repayments, according to Canstar data.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That equates to $49 each week going straight to the bank.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Moreover, the RBA isn't ruling out further rate hikes, with some major banks predicting a further two hikes this year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Should that eventuate, Australian mortgage holders will have to cough up a total of $98 a week more for their mortgage than they did at the start of the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>Fuel prices</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In further hip pocket pain, fuel prices have surged amid Iran's blockade of the Strait of Hormuz and widespread fears of a fuel shortage that has seen some stockpiling fuel.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In the last quarter of 2025, households were spending an average of $93.81 on fuel each week, according to </span><a href="https://www.aaa.asn.au/research-data/transport-affordability/" rel="" target="_blank" title="Australian Automobile Association data"><span>Australian Automobile Association data</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>At the time, the average national fuel price averaged 180.4c/L.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With unleaded fuel in Sydney currently averaging 229c/L, the same amount of petrol is now costing a family $119.60 a week - $25.80 more.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In addition to the $49 extra in average mortgage repayments, this means families are $74.80 a week worse off on average than at the start of February.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/petrol-prices-australia-emergency-meeting-with-major-fuel-companies-held-as-crisis-continues/3c1b2130-1e3d-4925-a1a0-46747aabfad3" rel="" target="" title="Emergency meeting with fuel companies as petrol crisis continues"><strong><span>Emergency meeting with fuel companies as petrol crisis continues</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Energy Minister Chris Bowen has warned fuel prices will remain high for the "foreseeable" future, meaning Australian households will have to factor this extra cost into their weekly budgets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>Grocery prices</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While the full impact of the Iran war on the cost of groceries has yet to play out, farmers are warning of price hikes amid a double-whammy of fuel and fertiliser price hikes. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Middle East, known for being one of the world's most dominant suppliers of oil, </span><a href="https://www.9news.com.au/national/us-israel-war-iran-urea-fertiliser-price-increase-australians-could-pay-more-for-groceries/16a4d95d-4778-4164-897d-45bedc6644b5" rel="" target="" title="also supplies up to 45 per cent of the world's urea"><span>also supplies up to 45 per cent of the world's urea</span></a><span> - a common fertiliser.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia relies almost entirely on imports, which have all but halted since the shut down of the Strait of Hormuz.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Adding to farmers' woes, soaring petrol prices and diesel supply chain issues have seen some regional communities run dry.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In Victoria, farmers have gone so far as to </span><a href="https://www.9news.com.au/national/fuel-shortage-regional-australia-farmer-urges-victorians-to-stop-driving-to-work/f247462b-544b-431b-96cc-4e2076173ef1" rel="" target="" title="advise city dwellers to commute to work instead of drive"><span>advise city dwellers to commute to work instead of drive</span></a><span>, to free up petrol supplies for regional areas after a number of regional communities ran completely dry in recent days.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Victorian Farmers Federation (VFF) president Brett Hosking has warned supermarket shelves could soon start to empty if fuel supply isn't secured.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>With fuelling farming equipment and moving freight an unavoidable price for Australian agriculture, it seems almost inevitable that those price hikes will see us paying more for our food.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/petrol-prices-australia-richard-marles-doesnt-rule-out-fuel-rationing/c9de0481-bc04-47d2-a272-7606548029ef" rel="" target="" title="Federal government's grim admission about fuel as war drags on"><strong><span>Federal government's grim admission about fuel as war drags on</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>