Aussie Misery Index Hits 25% Surge Amid Inflation, Interest Rate Hikes

The Australian misery index has been rising sharply this year, according to senior economics correspondent Shane Wright. The index combines unemployment, inflation, and the official cash rate to measure a nation's economic well-being.

In March 2025, the index was at its lowest point, with inflation at 2.1%, unemployment at 4.1%, and interest rates at 3.85%. However, by December, it had risen by about 15% compared to the previous year's low point.

The Reserve Bank of Australia has been increasing interest rates in an effort to combat rising inflation, which has contributed to the increase in the misery index. In March this year, the index was 25% higher than it was a year earlier.