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[BUSINESS] · Australia · 10 sources

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Part of situation: Australian economic and cost-of-living pressures (2 clusters)

Australia consumer sentiment plunges following RBA rate hike

consumer sentiment interest rate hike cost of living Reserve Bank of Australia inflation

Australian consumer sentiment has experienced a sharp decline, reaching levels not seen since the early 1990s recession. The Westpac-Melbourne Institute Consumer Sentiment Index fell 4.7% in October to 80.4 points. The downturn was particularly severe following the Reserve Bank of Australia's decision to raise the cash rate by 25 basis points to 4.60%, with sentiment among respondents surveyed after the announcement plunging to 67.2.

Economic pressures are being driven by high fuel prices, rising interest rates, and general inflation. While some sectors like cafes and restaurants show resilience, discretionary spending in categories such as clothing, footwear, and furniture has weakened. Additionally, Woolworths has increased its fuel levy on food and grocery suppliers, potentially adding further inflationary pressure to household grocery costs.

In the housing market, Commonwealth Bank economists forecast that national house prices will not bottom out until well into 2027. Despite the overall pessimistic sentiment, some indicators, such as the index for buying a dwelling, have shown slight increases.

Entities

Australia · Commonwealth Bank · Matthew Hassan · Melbourne Institute · Reserve Bank of Australia · Westpac · Woolworths

Claims

What the coverage asserts, and how many sources carry each claim.

Sources

Australia retail spending rises 6% as two-speed economy emerges [retailasia.com]
Wagyu prices are rebounding - but individual genetics, specs now matter [www.theland.com.au]
Podwyżka stóp RBA wywołała gwałtowne pogorszenie nastrojów w Australii [forexclub.pl]
Grocery prices threatened as Woolworths triples fuel levy [insidefmcg.com.au]
CBA boss reveals when house prices will hit rock bottom [thenightly.com.au]
Population growth not stopping ‘recession-like’ economy [theqldr.com.au]
Consumer confidence plunges to worst level since 1990s [www.perthnow.com.au]
Australia Westpac Consumer Sentiment Drops to 80. 4 as Post-RBA Responses Collapse [www.actionforex.com]
Behind the CPI figures: what the latest monthly grocery data really means [www.farmonline.com.au]
Consumer sentiment: Confidence drops to historic lows as cost-of-living pressures intensify [www.theage.com.au]