Australian consumer confidence rose 2.7 points in the week of May 25 to 31 to 68.8 points, its highest level since early March, according to a Tuesday note from ANZ Research.
Despite the rise, confidence remains 17.5 points below the 2025 average, ANZ economist Sophia Angala said.
The four-week moving average lifted 0.4 points to 66.4 points.
Weekly inflation expectations were down 0.2 percentage points to 5.9%, while the four-week moving average fell to 6.1%.
Current financial conditions over the last year rose 3.2 points to 61.9, while financial conditions over the next 12 months increased 2.2 points to 75.1.
Short-term economic confidence over the next 12 months was up 4.6 points to 60.1, while medium-term economic confidence over the next five years rose 0.4 points to 75.8.
The "time to buy a major household item" sub-index increased 3.1 points to 71.2, per the report.
The weak level of consumer confidence supports expectations that the Reserve Bank cash rate will likely stay at 4.35% in the near term, according to Angala.