Misery Index : Misery Up As Inflation Rises

Today’s inflation rose with CPI increasing 4.5% in April from 4.0% in March the highest rate since since October 2008. Guido’s Misery Index however uses the Retail Price Index, which though dropping slightly, is essentially flat lining. Misery has risen again due to a rise in the Public Sector cash requirement, which soared this month. We were happier in April, but as the Coalition reaches a year, the Misery Index reaches a high of 20.50. Nearly the most unhappy we’ve been all year…

The Misery Index adds on the government’s deficit divided by the GDP taken from the latest figures from the Office for National Statistics.

Retail Prices Index + Unemployment rate + ( Public Sector Net Cash Requirement / GDP ) = Misery Index

Plugging in the latest available figures for this month gives you:

5.2% + 7.8% + (24.8 / 330.8 x 100)  = 20.50

N.B. Stats bods can check Guido’s adding up here.



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