Inflation at the Household Level: Evidence From Tunisia Using a Quantile Regression Model

This study examines the heterogeneity in inflation's effects on Tunisian households, focusing on how socio‐economic factors such as income, geographic location, and household composition influence inflation vulnerability. Using data from the National Survey on Household Budget, Consumption, and Living Standards and employing ordinary least squares and quantile regression methods, the analysis reveals significant disparities in inflation experiences across household types. The findings show that poorer, rural, and smaller households face higher inflation rates, while households led by unemployed or retired individuals, and those with lower educational attainment, are particularly vulnerable. Conversely, older household heads experience lower inflation rates, likely due to greater financial stability. The study offers important policy implications, emphasizing the need for targeted interventions such as direct cash transfers, subsidies, and education reforms to mitigate the disproportionate effects of inflation on vulnerable groups. By addressing these disparities, policymakers can foster more resilient and equitable household economies in Tunisia.