Misery index worsens to 20.3% in January, highest in nearly 2 years

The Philippines’ adjusted misery index soared to an 18-month high of 20.3% in January from 13.8% in December 2025. The latest figure marked the fastest reading in almost two years or since the 20.7% in July 2024. Philippine inflation accelerating to an 11-month high of 2% and underemployment rate climbing to a six-month high of 13.2% in January contributed to the misery index worsening. 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.