Australian consumer sentiment jumps to a seven-year high in November, buoyed by optimism on the economy and family finances despite ongoing inflation and interest rate concerns, according to a survey by Westpac and the Melbourne Institute published Tuesday.

The Westpac-Melbourne Institute Consumer Sentiment Index rose 12.8% to 103.8 in November from 92.1 in October, marking the first net-positive reading in nearly four years.

Consumer sentiment edged up in November, ending a prolonged period of pessimism as optimism about the economy surged, with both 12-month and five-year outlook indexes climbing well above long-term averages, Westpac Head of Australian Macro-Forecasting Matthew Hassan said.

The sentiment rose on stronger demand, a recovering housing market, and eased US-China trade tensions, despite lingering inflation and the Reserve Bank of Australia's (RBA) rate hold.

November saw a surge in consumer expectations, with mortgage rate concerns hitting a 14-month high while confidence in family finances rose sharply following a less hawkish-than-expected RBA decision.

Consumers' expectations for their finances surged in November, with the family finances, next 12 months index jumping 12.3%, though current assessments remained subdued.

Consumers' buyer sentiment surged in November, with the time to buy a major item index hitting a four-year high, pointing to a cautiously positive lead-in to the Christmas shopping season.

Despite growing confidence in the economy and family finances, consumers' concerns about jobs are rising, and homebuyer sentiment remains mixed, with younger buyers benefiting from the expanded first-homebuyer guarantee.

Consumers' house price expectations hit a new cycle high in November, with positives outweighing interest rate concerns and supporting the ongoing recovery.