From the Guardian · · 1m
Australia's inflation crisis masks a stronger jobs market
Australia has worse inflation than other rich countries, but its unemployment is lower, making overall economic pain middle-of-the-pack by one measure.
In brief
Australia has worse inflation than other rich countries, but its unemployment is lower, making overall economic pain middle-of-the-pack by one measure. Australia's inflation of four point three percent exceeds other advanced economies, but a stronger labour market puts overall economic misery at middle-of-the-pack…
Australia's inflation outpaces the world
Consumer prices climbed four point three percent in the year to September and are expected to rise faster by year end. No other advanced country matches this level.
“Our inflation problem is worse than in other countries, that is very clear”
But Australia's jobs market is stronger
While inflation is worse here, unemployment performance has been much better than in New Zealand, Canada and Europe, according to Jonathan Kearns, chief economist at Challenger.
“Our performance in unemployment has been much better than in New Zealand, Canada and in Europe, and that is a positive thing for Australia”
The misery index tells a different story
The misery index, created by American economist Arthur Okun in the nineteen seventies, adds unemployment and inflation rates together. By this measure, Australia ranks middle-of-the-pack globally.
The bottom line
Australia's inflation of four point three percent exceeds other advanced economies, but a stronger labour market puts overall economic misery at middle-of-the-pack globally.
