Australian Consumer Confidence Tumbles on Inflation, Rate Hikes

Australian consumer sentiment dropped in June as accelerating inflation and the Reserve Bank’s outsized half-point interest-rate increase last week spooked households about the outlook for the economy.

The confidence index dropped 4.5% to 86.4 points, approaching levels normally seen during major economic dislocations, Westpac Banking Corp. said in a statement Wednesday. The survey of 1,200 respondents was conducted June 6-9, meaning it encompassed the RBA’s larger-than-expected hike on June 7.