latest gauge of mood among Australians took a massive dive as a result of rising rates and ongoing war in the Middle East, which is raising fuel prices. The Westpac-Melbourne Institute consumer index plunged to 80.1 points in April, down from 91.6 points in March, marking the largest monthly decline since the beginning of the COVID-19 pandemic. The reading was the lowest since November 2023.

According to Westpac, the sharp deterioration suggests consumers are bracing for a return to the extended period of weakness experienced during the pandemic. The biggest declines were in sub-indices tracking current conditions, with surging fuel costs negatively impacting the family finances versus a year-ago sub index by almost

-17%.  

The Reserve Bank of Australia raised interest rates last month, with the official cash rate now at 4.1%. That’s the highest rate since April 2025 amid continued sticky inflation.