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Australia Consumer Sentiment Ticks Higher as Inflation Expectations Spike

Inflation expectations jumped to 6.1%, the biggest weekly rise in the series since 2010.

Image
A woman stands inside a shop selling fruits on a street in Sydney’s central business district, Australia, February 3, 2026. REUTERS/Flavio Brancaleone
People cross the street in Sydney’s Central Business District, Australia, February 4, 2026. REUTERS/Nikki Short
Australian consumers could start spending less as confidence falls: NewsWire/Tertius Pickard

Overview

  • The Westpac–Melbourne Institute index rose 1.2% in March to 91.6, remaining well below the neutral 100 mark.
  • Responses late in the March 2–6 survey implied sentiment near 84 as petrol prices climbed and the Middle East conflict escalated.
  • Households’ inflation expectations increased by 0.8 percentage points to 6.1%, the largest weekly gain since tracking began in 2010.
  • A separate ANZ–Roy Morgan weekly gauge fell to 73.4, underscoring how fuel costs and fast-moving events are weighing on confidence.
  • The RBA lifted the cash rate to 3.85% in February and signalled it could tighten further if inflation stays stubborn, while an NAB survey showed business confidence slipping into negative territory.