08.09.202601:19:22UTC+00Australia Consumer Sentiment Sinks in September

Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell 5.2% month-on-month to 84.4 in September 2026, erasing a 6.0% gain in August and marking its first decline since June. Confidence weakened as rising fuel prices and fears of further interest rate increases weighed on households.

Perceptions of household finances deteriorated sharply. Assessments of finances compared with a year ago dropped 9.2% to 72.6, while expectations for finances over the coming 12 months slipped 3.8% to 94.5. Views on the broader economy also worsened, with the one-year economic outlook down 4.0% to 79.5 and the five-year outlook falling 4.5% to 85.8.

The index gauging whether it is a good time to buy major household items declined 4.8% to 89.3, and unemployment expectations rose 2.8% to 139.4, indicating increased concern about future job security.

Westpac economist Matthew Hassan said the strong July CPI reading had heightened the risk of an additional interest rate hike. However, he noted that the Reserve Bank of Australia is unlikely to respond to a single monthly inflation print, given the volatility of the series, especially with the next CPI release scheduled for the day after the upcoming policy meeting.