Australia has an especially bad inflation problem. So why are we only middle-of-the pack on the misery index?
Comparing Australia to other countries may not be much comfort but does offer some perspective on the economy A day after the Reserve Bank delivered its fifth interest rate hike for the year, increasingly stressed mortgage holders would be justified asking. For Jonathan Kearns, the chief economist at Challenger, the answer is easy. “Our inflation problem is worse than in other countries, that is very clear,” Kearns says. Consumer prices on average climbed by 4.3% in the year to September, and are anticipated to climb even faster by year’s end. A quick survey of other advanced countries, and the eurozone, shows none with inflation near our level.
