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In August 2025, the Westpac-Melbourne Institute Consumer Sentiment Index in Australia experienced a significant month-on-month increase of 5.7%, reaching its highest point since February 2022, at 98.5. This is a notable acceleration from the modest 0.6% rise observed in July. The improvement in consumer sentiment can be attributed to the Reserve Bank's cumulative 75 basis points rate cuts since the beginning of the year, as well as a more positive outlook from the central bank.
