Australian consumer confidence hits record low in March 2026 due to high interest rates, inflation, and petrol prices.

Australian consumer confidence has hit a record low in March 2026, falling to 63.1—the worst since records began in 1973—driven by a 4.1% interest rate hike, soaring inflation expectations at 6.9%, and rising petrol prices tied to Middle East tensions. The drop, the steepest since the 1973 oil shock, reflects deepening anxiety over personal finances, with major purchases at a six-year low and most households reporting worsened financial conditions. The Reserve Bank’s tightening stance, while aimed at curbing inflation, risks triggering economic slowdowns, with regulators warning of financial stability risks amid high household debt and competitive lending.