Does Elevated Misery Index Suggest a Recession?

Does Elevated Misery Index Suggest a Recession?
Shelves displaying meat are partially empty as shoppers make their way through a supermarket in Miami on Jan. 11, 2022. Joe Raedle/Getty Images
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The misery index—a formula that combines the annual inflation and unemployment rates—has been elevated since April 2021. The decades-old index aims to measure the level of economic distress felt by average citizens due to joblessness and the rising cost of living.

It could be an effective gauge to determine economic conditions during a recession. The higher the index, the greater the misery felt by everyday people.

Andrew Moran
Andrew Moran
Author
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."
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