July Misery Index climbs to 1-year high

The Philippines’ adjusted misery index climbed to 20.2% in July, the highest in a year when it logged 20.7%. It reflected easing inflation but worsening labor market conditions. The index, which now incorporates adjusted underemployment rate* alongside inflation and unemployment rates, offers a broader measure of economic discomfort. Originally developed by economist Arthur Okun, the misery index serves as a proxy for economic distress. A lower reading typically signals better economic health, though structural issues may still persist beneath the surface.