Australian Misery Index Hits Record High

Australia's economy is experiencing high levels of misery, according to an index created by economist Arthur Okun in the late 1960s.

The Australian misery index combines unemployment, inflation, and the official cash rate. Currently, it has climbed sharply this year, with a 25% increase since March 2025 when the federal election was won by Anthony Albanese.

This rise in misery is linked to rising inflation, higher interest rates, and increasing joblessness. The Reserve Bank's governor Michele Bullock has warned that if inflation doesn't slow down quickly enough, home borrowers will face another rate hike, exacerbating their financial difficulties.