Australia’s Westpac–Melbourne Institute Consumer Sentiment Index fell -3.5% MoM to 92.1 in October 2025, a six-month low, as renewed inflation concerns dampened household optimism and reversed much of the mid-year recovery. The index remains +2.5% higher YoY but firmly in pessimistic territory.

• Family finances next 12mths fell sharply (-9.9% MoM) to 97.1, the weakest since mid-2024 and only the second sub-100 reading since November, reflecting fading policy support and inflation worries.

• Family finances vs a year ago declined -4.8% MoM to 82.1, reversing half of its prior two-month improvement.

• Economic conditions next 12mths weakened -3.1% MoM to 89.9, the lowest in a year, while economic outlook next 5yrs edged up +1.4% to 94.0, slightly above its long-term average.

• Time to buy a major household item dipped -1.1% MoM to 97.2, holding below its long-run average (124) despite a 22% gain since mid-2024, suggesting continued restraint in discretionary spending.

• Mortgage Rate Expectations rose +15.6% MoM to 101.7, as consumers grew less certain about the RBA’s next move; 61% expected stable or lower rates, down from 69% in September.

• Unemployment Expectations fell -2.9% MoM to 127.6 (lower = more optimism), remaining near its long-term average and consistent with a stable job market.

• House Price Expectations climbed +2.1% MoM to a 15-year high of 171.9, with over 75% of respondents expecting price gains; Queensland led at 184, ahead of Victoria (165) and WA (166).

• Time to buy a dwelling was little changed at 96.5 (+0.4% MoM), with sentiment strongest in Victoria (108) and weakest in Queensland (86), all still below long-run norms.