<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/australia-fuel-shortages-farmers-hit-first-supplies-dry-up/132dbef5-dad4-4e43-a4f5-e051b989275b" rel="" target="_blank" title="Soaring oil prices pushing petrol"><span>Soaring oil prices pushing petrol</span></a><span> to over $2 per litre in Australia could drive </span><a href="https://www.9news.com.au/inflation" rel="" target="_blank" title="inflation"><span>inflation</span></a><span> to peak above five per cent, economists have warned.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The conflict in the Middle East and Iran's blockade of the Strait of Hormoz is hitting </span><a href="https://www.9news.com.au/national/fuel-shortage-australia-why-independent-stations-hit-the-hardest/fdcc047b-aeac-41aa-81d2-9cad99940605" rel="" target="_blank" title="Australian motorists hard at the bowser"><span>Australian motorists hard at the bowser</span></a><span> – but the impact will likely be felt beyond the fuel market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Economists at National Australia Bank (NAB) predict the post-war price of oil barrels, which have already surged past $US$84 ($118), could have an alarming ripple effect on household inflation and, in turn, grocery prices at the checkout.</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>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-attack-iran-live-updates-march-10-donald-trump-latest-world-news-headline/f56853f3-caaf-4561-a0f2-16433f810007" target="_blank"><strong><span>Five Iranian soccer team players granted asylum</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/interest-rates-expert-says-another-hike-coming-in-may/e2047d98-a00a-449f-a103-3a46c4a7af32" rel="" target="_blank" title="Households already bracing for consecutive cash rate hikes"><span>Households already bracing for consecutive cash rate hikes</span></a><span> before June will feel the pinch as crude oil prices continue to rise rise sharply and petrol stockpiling persists.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Headline CPI is "likely" to peak 0.5 percentage points higher than expected before the conflict began, reaching 4.75 per cent in the second quarter.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>NAB warned a "sustained move" toward US$100/bbl would push the peak above five per cent, which hasn't been felt since the Russian-Ukraine war began in 2022.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/panic-buying-fuel-shortages-australia-inflation-hits-five-per-cent/be00a858-4fb3-417a-8452-a501dc97f297" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The RBA will hope to look through these first-round impacts, consistent with its comfort relying on anchored inflation expectations this cycle," NAB said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"However, that comfort will be tested, and the starting point for inflation is not favourable.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The bank will be paying close attention to inflation expectations."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers earlier this week said the Australian economy should prepare for "intense volatility" from the global unrest.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The economic consequences are uncertain, but they are likely to be very substantial," Chalmers said.</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/us-israel-attack-iran-anthony-albanese-donald-trump-phone-call-iranian-footballers/4092c0df-f062-46c0-b1d5-ad0dca976579" target="_blank"><strong><span>Trump's praise after late-night call with Albanese</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A prolonged fuel shortage may have a long-term impact on grocery prices over the next few months too as farmers face dwindling supplies.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Pressure on shipping and logistics, which in turn impacts food supply chains, "should be expected", NAB economists added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Consumer goods, ranging from fruit and vegetables to seafood, pork beef and milk, are all under threat from major price hikes if farmers are cut off completely from fuel delivery during the critical pre-winter season.</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/world/mojtaba-khamenei-son-of-irans-supreme-leader-has-been-named-his-successor-iranian-state-tv-says/2af18a14-e341-4b8d-9e30-e3382d346e47" target="_blank"><strong><span>Who is Mojtaba Khamenei, Iran's new Supreme Leader?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Farmers rely heavily on fuel to power tractors, irrigation pumps and other machinery used to harvest crops.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Animals will start dying, crops are going to suffer," Transwest Fuels co-owner Sam Clifton told </span><a href="https://www.9news.com.au/national/fuel-shortage-australia-why-independent-stations-hit-the-hardest/fdcc047b-aeac-41aa-81d2-9cad99940605" rel="" target="_blank" title="nine.com.au"><span>nine.com.au</span></a><span> yesterday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"One farmer I spoke to had just 1000 litres left."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite assurances that Australia had plenty of reserve fuel, motorists began panic-buying petrol and stockpiling with jerry cans, forcing wholesalers to ration supply.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Energy Minister Chris Bowen said the issues impacting farmers was due to an unprecedented "spike in demand", rather than a shortage.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There has been a big spike in extra orders over and above contracts, spot orders if you like … and inevitably, when you're seeing a huge increase in demand, they're having trouble keeping up with that," Bowen said.</span></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><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></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 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