مجلة دفاتر اقتصادية
Volume 17, Numéro 1, Pages 462-475
2026-06-02

Beyond The Price Tag: A Deep Dive Into Household Spending And Its Effects On Cpi



Authors : Abdelhafidi Mhamed . Elhadi Ali .

Abstract

The study "Beyond the Price Tag: A Deep Dive into Household Spending and Its Effects on the CPI" looks into Algerian household spending and inflation from 2000 to 2025. Regression analysis and long-run connection tests are used in this quantitative study using data from the World Bank and the National Statistics Office. The findings indicate statistically significant relationships between household spending, per-capita GDP, and the Consumer Price Index: while growth in per-capita GDP exhibits a complicated, occasionally negative relationship with real welfare—suggesting purchasing power erosion due to inflation—increased household spending is linked to changes in the CPI. The results emphasize the necessity of economic diversification to lessen sensitivity to external shocks, targeted assistance for disadvantaged households, and anti-inflation measures. The study suggests more robustness

Keywords

Household consumption expenditure ; Consumer Price Index (CPI) ; Per-capita GDP ; Algeria

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