Australian consumer sentiment fell 5.2% month on month to 84.4 in September 2026, reversing a 6.0% rise in August and marking its first decline since June. The Westpac-Melbourne Institute index remained nearly 12% below its year-earlier level, leaving pessimists more numerous than optimists as higher fuel prices and concern over further interest-rate increases weighed on households. Sentiment toward finances over the past year dropped 9.2% to 72.6, while expectations for finances over the next 12 months fell 3.8% to 94.5. The one-year economic outlook declined 4.0% to 79.5 and the five-year measure fell 4.5% to 85.8. The measure of whether it was a good time to buy major household items dropped 4.8% to 89.3, while unemployment expectations rose 2.8% to 139.4. Sentiment among mortgage holders fell 13%, compared with a 0.6% decline among renters. Westpac's Matthew Hassan said fuel prices and interest-rate concerns were again the main drags, while July's above-forecast core inflation reading strengthened expectations for a fourth Reserve Bank of Australia rate increase that year.