By Islam El-Sakka
Australia's inflation rate remains higher than in other advanced economies, but a stronger labour market softens the overall economic pain, according to analysis of the so-called misery index.
Inflation Outpaces Comparable Nations
Consumer prices rose 4.3% in the year to September, a pace faster than any other advanced country or the eurozone. The Reserve Bank has responded with its fifth interest rate increase this year, adding pressure on mortgage holders.
Labour Market Strength Offsets Pain
Chief economist at Challenger, Jonathan Kearns, notes that Australia's unemployment performance has been much better than in New Zealand, Canada, and Europe. This relative strength in the jobs market provides a positive counterbalance to rising living costs.
Misery Index Provides Perspective
The misery index, which adds unemployment and inflation rates, places Australia in the middle of the pack among comparable nations. While not comforting, the measure offers a broader view of household economic experience during this challenging period.
