Aussies Struggle: Misery Index Up 220%

There are new findings about Australia's "misery index." The index has increased a lot, almost like during the financial crisis. This is because of inflation and interest rates getting higher.

The index went up by 220% in 2022. This is more than the 62% rise during GFC in 2007-2008.

Since the 1960s, the index has been following inflation, interest rates, and unemployment in Australia.

University of Melbourne economists Guay Lim and Sam Tsiaplias did an analysis. The Sydney Morning Herald reported on it. They found that the index is likely to remain high. This will happen for some time.

Although inflation decreased a bit, unemployment and interest rates are still going up.

One out of three economists think that the Reserve Bank of Australia will increase the rate tomorrow.

If the RBA raises interest rates by 0.25%, those with a $600,000 mortgage could see an increase of up to $17,000 annually. This increase has been happening since last May.

Transport is another big reason for families' money problems.

A report from the Australian Automobile Association shows that car expenses increased by 7.4% during the March quarter. The average cost went up by $28.31 per week.

It went up to $34 a week in Melbourne and Brisbane.

Sydney has a low increase at $18 per week. But, it's still the most costly place to own a car. The related costs are around $510 per week.

Australia has both affordable and expensive rental cities. Finding affordable rent in Australia is possible in Hobart, where the average rent per week is $430. But if you prefer big and bustling cities, then Sydney and Melbourne are likely on your list. However, these cities are also the most expensive to rent with an average weekly rent of $580 and $480, respectively. Other costly cities to rent in are Canberra and Darwin. While other affordable cities are Adelaide, Brisbane, and Perth. Knowing the rental prices per city can help guide your decision on where to live.

Join us now to get our daily newsletters and breaking news alerts. They'll come straight to your inbox.