The annual 'misery index' is out - where does NZ rank?

The annual 'misery index' has been released, and it shows New Zealand has moved up the list.

Steve Hanke, professor of Applied Economics at Johns Hopkins University, compiles the Annual Misery Index (HAMI).

It is the sum of unemployment (multiplied by two), inflation, and bank-lending rates, minus the annual percentage change in real GDP per capita.

According to the index, Zimbabwe is the "most miserable", ahead of Venezuela, Syria and Lebanon.

Hanke said Zimbabwe's battles with inflation were the cause of its ranking.

"Zimbabwe has suffered endemic inflation since the Mugabe era, including two episodes of hyperinflation, in which the inflation rate (a component of the HAMI), exceeded 50% per month for 30 or more days," Hanke said.

"Last year didn't deliver much better, with annual inflation at 243.8%, and lending rates following suit at 131.8%"

Switzerland was "happiest" of the 157 nations on the list, followed by Kuwait and Ireland.

New Zealand came in at 104th. In 2021 it was 151st out of 156 nations.

Its lending rate was highlighted as the major factory influencing its ranking.

The Reserve Bank will tomorrow update the official cash rate, which currently sits at 5.25%.

It's tipped to go up again, but reaction to last week's Budget and immigration numbers mean some economists are picking it won't be the peak, as previously expected.

"The impending RBNZ Monetary Policy Statement now looks more on a knife-edge," ASB chief economist Nick Tuffley told NZME.

"We had previously thought that the RBNZ would do a final 25bp increase on May 24. Post-Budget, we now expect a 50bp lift in May.

"We think that will be it, but that the RBNZ will flag the risk of a further hike.

"There is an evident turning in inflation pressure and lagged monetary policy impacts that are yet to come through. But there are two added flies in the inflation ointment: fiscal pressures and the uncertain inflation impact of migration."