For the first time in seven years men are feeling better than women, but overall happiness is taking a dive as inflation hits the hip pocket, research shows.

The Australian Unity Wellbeing Index has issued preliminary findings from its latest survey, showing that cost of living pressure is having more impact on women.

Australia's overall wellbeing level is 74.8 on a scale of 100, close to the historical average of 75 but down 1 percentage point since the previous survey.

The report's author, Deakin University's Professor Bob Cummins, said new research had shown a strong link between the consumer price index and happiness, with women feeling the pressure as a household's main spender. He said if inflation remained high, ''happiness will go down for sure''.

''What we have realised this time around is that wellbeing is sensitive to the CPI, particularly [with] women,'' he said. ''I guess that makes sense because women in a family are the major purchasers and therefore are the ones most in touch with the price of bread.''

The preliminary findings come from the index's 19th survey of 2000 people in April and May, measuring satisfaction with health, relationships, safety, standard of living, community connection, spirituality and other criteria.

The findings are in line with the view that life has become tougher in recent months, with prices for basic groceries and essential goods and services rising.

Increasing mortgage repayments and rent are also having an impact, particularly among the middle-aged. People in the 46-55-year age bracket remain Australia's least happy.

The report comes as state and Federal governments warn about tougher economic times ahead, with growth slowing around the globe.

The results show Australia's well-being has fallen 1 percentage point in the six months since November 2007. Satisfaction with government has grown steadily since 2006.

Professor Cummins said Australians had not connected the economy with government performance during the ''euphoria, dare I say it, of getting rid of [John] Howard ... It will be a different story in the next survey, people will once again start to connect the Government with the economy.''