Consumer confidence in Australia increased last week, according to the latest ANZ-Roy Morgan survey. The index rose by 1.7 points to reach 86.3 points, though the four-week moving average slipped by 0.4 points to 86.5 points.
Weekly inflation expectations saw a slight increase of 0.1 percentage point, reaching 5.1 percent, while the four-week moving average for inflation expectations was recorded at 4.9 percent.
The survey also found that perceptions of current financial conditions over the past year improved by 1.0 point, and expectations for future financial conditions over the next twelve months rose by 1.5 points.
Short-term economic confidence, which measures outlook for the next year, went up by 1.4 points. Medium-term economic confidence, reflecting sentiment for the next five years, climbed by 2.4 points.
The subindex tracking whether it is a good time to buy a major household item increased by 2.4 points.
ANZ Economist Sophia Angala commented on the results: "ANZ-Roy Morgan Australian Consumer Confidence rose 1.7 points to 86.3 points last week, supported by a lift across all the subindices. The headline measure is now just below the average it has held so far in 2025 (86.8 points). Weekly inflation expectations rose 0.1 percentage point last week after the monthly CPI indicator showed headline inflation at 3.0 per cent over the year to August, the top of the RBA’s 2-3 per cent target band."
Angala added: "We expect the RBA will keep the cash rate on hold at 3.60% today. In the post-meeting communications, it is likely Governor Bullock will emphasise the importance of ensuring that inflation remains contained. On a 4-week moving average basis, weekly inflation expectations have largely moved sideways over the past year, suggesting inflation expectations are anchored."