Australian Consumer Confidence Plunges Amid Fuel Price Hikes and Rate Concerns
Australia's consumer confidence fell sharply in September 2026 due to rising fuel costs and concerns over borrowing costs.
The Westpac-Melbourne Institute Consumer Sentiment Index dropped 5.2% month on month (MoM) to 84.4 from 88.9 in August, according to the Westpac-Melbourne Institute Consumer Sentiment Bulletin.
Average pump prices rose 6.7% between the August and September surveys, taking petrol prices above A$2 per litre (~$1.44) for the first time since April, with higher global energy prices and the expiry of a temporary reduction in fuel excise tax contributing to the increase.
Concerns over borrowing costs also grew after higher-than-expected inflation in July raised fears that the Reserve Bank of Australia (RBA) could increase interest rates again, leading to weaker labour-market expectations.