Australian Westpac Consumer Sentiment Falls Back Near Record Lows as Cost-of-Living Pressures Intensify

Australian consumer sentiment weakened again in June, with the Westpac-Melbourne Institute index falling 2.9% to 80.6, erasing most of May’s improvement and leaving confidence near historic lows. The report points to intensifying cost-of-living pressure and a sharp deterioration in household finances, while longer-term expectations also worsened. The data reinforces the difficulty facing the Reserve Bank of Australia ahead of its next policy meeting: consumer confidence is being hit by tighter monetary policy and higher energy costs, but inflation remains elevated enough to keep further rate hikes on the table later this year. Markets may interpret the release as mildly dovish for Australian growth, but not enough to rule out additional tightening.