Inflation is still elevated, house prices are falling, and consumer confidence has slumped. Bond yields, meanwhile, are near multi-year highs. Yet share markets have held up. Here is the wrap.

Key Takeaways

• Inflation stayed high. August CPI rose to 4.0%, driven by housing and fuel, while underlying inflation held at 3.6%, still above the RBA’s target.

• House prices kept falling. National values fell 1.1% in September according to Cotality’s Home Value Index, the sixth straight monthly decline, leaving them about 5.2% below their March peak.

• Consumer confidence slumped. Westpac’s Consumer Sentiment Index fell 4.7% to 80.4 after last week’s rate hike, with sentiment now at its lowest since the early-1990s recession.

• Bond yields are near…