Takeaway coffee sales plunge as fuel and living costs dent Australian spending. Is the economy next?

Takeaway coffee sales in Australia have fallen sharply as rising petrol and living costs — amplified by oil supply fears from the Middle East conflict — push consumers to cut discretionary spending. National Australia Bank research shows more than 50% of consumers are scaling back on treats, and the Westpac-Melbourne Institute sentiment index recorded its sharpest monthly drop since the pandemic. Higher fuel prices in March have accelerated the shift, prompting cafes to consider price rises while customers shift to cheaper at-home or petrol-station coffee. Economists warn the trend could presage broader consumption weakness and heighten recession risk if oil flows through the Strait of Hormuz remain disrupted, though some forecasts see easing rather than collapse in overall spending.