UK Economy Improves According to Misery Index

The UK economy has improved according to one of economics' most famous indicators, the 'Misery Index'. This index combines unemployment and inflation rates into a single measure. In the UK, a reading of about 6.5 per cent might be considered healthy, reflecting 2 per cent inflation and unemployment of about 4.5 per cent.

The Misery Index was created by economist Arthur Okun in the 1970s as a simple gauge of economic wellbeing. During stagflation in the 1970s, the index climbed into the thirties.