This is the longest period of economic hardship for Australians since 2011.
According to CEDA's "misery index", economic distress in Australia remains elevated post-COVID-19 pandemic, and is on the rise.
Additionally, the data shows that inflation is responsible for about half of the households' economic distress from mid-2021 to mid-2023.
Developed by American economist Arthur Okun in the 1960s, the misery index integrates inflation, unemployment, and interest rates to provide an overview of economic conditions.
Including per capita GDP growth enhances the accuracy of the analysis.
Rising inflation, unemployment, and interest rates, combined with a slow economy, lead to the escalation of misery.
The index shows a decline from its peak following the COVID-19 pandemic, but it remains quite high.
Over the June quarter of 2021 to the September quarter of 2023, inflation contributed more to Australia's economic woes than high interest rates or unemployment in the past.
Despite its decrease from its highest levels, inflation remains high. Families still have to spend more on daily necessities as a result of it.
