Australia’s Westpac–Melbourne Institute Consumer Sentiment Index climbed 4.1% in July to 83.9, reversing June’s 2.9% drop as worries over energy costs, rising rates, and labor market weakness eased. Yet confidence remains historically fragile, still lodged in the bottom decile of the survey’s 50-year record and vulnerable to global shocks, particularly Middle East tensions. Households showed brighter views of their finances, with assessments of the past year up 5.6% to 71.1 and 12-month expectations surging 13.4% to 96.5. Broader economic sentiment improved modestly, while the gauge on whether it is a good time to buy major household items edged to 86.8. Unemployment expectations fell 7.1% to 129.9, signaling reduced labor market fears. Westpac economist Matthew Hassan cautioned that inflation remains the Reserve Bank’s central concern, with the June-quarter CPI likely decisive ahead of the August meeting, where he expects another 25-basis-point hike.