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U.S. "misery index" rises to highest since 1983
CHICAGO (Reuters) - An unofficial gauge of human misery in the United States rose last month to a 28-year high as Americans struggled with rising inflation and high unemployment.
The misery index -- which is simply the sum of the country's inflation and unemployment rates -- rose to 13.0, pushed up by higher price data the government reported on Wednesday.
The data underscores the extent that Americans continue to suffer even two years after a deep recession ended, with a weak economic recovery imperiling President Barack Obama's hopes of winning reelection next year.
Consumer prices rose 3.9 percent in the 12 months through September, the fastest pace in three years.
With gasoline prices high, consumers have less to spend on other things. Moreover, a rise in overall prices saps economic growth, which is typically measured in inflation-adjusted terms.
The last time the misery index was at current levels was in 1983. But in 1984 an improving economy probably helped President Ronald Reagan win reelection. This year, the index has risen more than 2 points.
"Any lowering of inflation isn't going to have much effect. People are just focused like a laser on unemployment," said independent political analyst Stuart Rothenberg.
Analysts polled by Reuters last week saw the jobless rate -- currently stuck at 9.1 percent -- barely ticking down to 8.9 percent by the end of next year. With the election in November 2012, the expected decline looks unlikely to help Obama's job prospects much.
http://finance.yahoo.com/news/US-misery-index-rises-to-rb-3376231513.html?x=0&.v=1
CHICAGO (Reuters) - An unofficial gauge of human misery in the United States rose last month to a 28-year high as Americans struggled with rising inflation and high unemployment.
The misery index -- which is simply the sum of the country's inflation and unemployment rates -- rose to 13.0, pushed up by higher price data the government reported on Wednesday.
The data underscores the extent that Americans continue to suffer even two years after a deep recession ended, with a weak economic recovery imperiling President Barack Obama's hopes of winning reelection next year.
Consumer prices rose 3.9 percent in the 12 months through September, the fastest pace in three years.
With gasoline prices high, consumers have less to spend on other things. Moreover, a rise in overall prices saps economic growth, which is typically measured in inflation-adjusted terms.
The last time the misery index was at current levels was in 1983. But in 1984 an improving economy probably helped President Ronald Reagan win reelection. This year, the index has risen more than 2 points.
"Any lowering of inflation isn't going to have much effect. People are just focused like a laser on unemployment," said independent political analyst Stuart Rothenberg.
Analysts polled by Reuters last week saw the jobless rate -- currently stuck at 9.1 percent -- barely ticking down to 8.9 percent by the end of next year. With the election in November 2012, the expected decline looks unlikely to help Obama's job prospects much.
http://finance.yahoo.com/news/US-misery-index-rises-to-rb-3376231513.html?x=0&.v=1