Australia misery index rises amid inflation and interest rate hikes

The Australian misery index, a metric combining inflation, unemployment, and the official cash rate, has risen significantly. Following a low point around March 2025, the index began climbing mid-year.

By December 2025, the index was approximately 15 per cent higher than its previous low. By March 2026, it had increased by 25 per cent compared to the levels seen less than 12 months prior. This upward trend is attributed to rising inflation, increasing interest rates from the Reserve Bank, and a gradual rise in the jobless rate.