Consumer confidence is getting back on track, with the first leap, albeit a modest one, since June.

This is according to ANZ-Roy Morgan’s weekly index, which shows a gain of 0.2 per cent last week.

Inflation expectations dropped 0.2 per cent to 5.8 per cent, the lowest point since mid-June and proof that consumers are beginning to settle into the realities of the economic conditions.

‘Economic conditions next year’ strengthened 4 per cent, while ‘economic conditions in the next five years’ recovered 3.3 per cent.

It’s not all rosy though, ‘Current financial conditions’ fell 2 per cent, the tenth straight week of this dropping.

ANZ head of Australian economics David Plank acknowledged that high inflation and rising interest rates were “feeding into households’ weak assessment of their financial conditions”.

“That is yet to show up in spending behaviour,” he said.

“However, inflation expectations dropped to a one-month low, with global fuel prices moderating.

“Australia’s wholesale petrol prices declined last week fuelling hopes that retail prices will moderate. This will likely be good news for sentiment if it occurs.”