Australia’s Consumer Confidence Edges Lower on Inflation Fears

Australians have faced an income squeeze from persistently high inflation and elevated borrowing costs that currently stand at a 12-year high of 4.35%. 

Photographer: Brent Lewin/Bloomberg
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Australia’s consumer confidence dipped in May as households expressed concern about persistent inflation potentially prompting the Reserve Bank to raise interest rates again, offsetting a boost from last week’s budget.

Sentiment fell 0.3% to 82.2 points, with 100 being the dividing line between pessimists and optimists, a Westpac Banking Corp. survey showed Tuesday. The result comes after Treasurer Jim Chalmers handed down his annual fiscal blueprint that may be the center-left government’s last before an election.