The ANZ-Roy Morgan Australian Consumer Confidence rose 1 point to 77.5 in the week of Aug. 24 to Aug. 30, with the series now at its highest level since the escalation of the conflict in the Middle East, ANZ Research reported Tuesday.

The four-week moving average rose 1.6 points to 75.9 points, per the report.

The rise was underpinned by an improvement in the financial conditions subindices, as well as households' views about buying a major household item, according to ANZ economist Madeline Dunk.

Across the housing cohorts, confidence improved most for households paying off a mortgage, Dunk added. Confidence among outright homeowners is at its highest since June, and among those paying off a mortgage, at its highest since March.

Weekly inflation expectations rose to 6.1%, while the current financial condition indicator for 12 months decreased to 68 from 69. The future financial conditions for the next 12 months rose to 84.2 points from 88.3 points.

Short-term economic confidence for the next year increased to 72.7 from 68, while medium-term economic confidence for the next five years rose to 82.4 points from 80.4 points.

The "time to buy a major household item" subcategory rose to 80.4 points from 76.6.