Consumer sentiment has plunged to levels not seen since the recession of the early 1990s .. as households struggle with cost-of-living pressures and the threat of more rate hikes.

New figures show soaring food and petrol prices .. higher interest rates and ongoing volatility in sharemarkets are continuing to weigh on the minds of consumers.

There are also fears the higher prices will boost inflationary expectations .. and in turn .. fuel more inflation.

The Westpac-Melbourne Institute index of consumer sentiment fell 5.6 per cent in June to 84.7 points .. its lowest level since December 1992.

AAP