Algeria: cost of living

Which products does Algeria subsidise?

Algeria's 2026 budget provides about 657 billion dinars to subsidise everyday goods: cereals, milk, desalinated water, energy, sugar, oil and coffee, according to the Ministry of Finance's 2026 finance bill presentation report.

These subsidies are part of the state's transfer spending of 5,959.8 billion dinars in 2026. The report lists the products covered but not the subsidised prices. Subsidies keep shop prices for these goods below their cost, so changes to them affect household budgets directly.

Official sources: Ministry of Finance (DGPP): 2026 finance bill presentation report

Are food prices rising in Algeria?

Algeria's food inflation averaged 1.42% in the first six months of 2025, down from 3% a year earlier, according to the Ministry of Finance's 2026 finance bill presentation report. Prices of processed food fell 0.85%, while fresh farm produce rose 3.41%.

Overall inflation averaged 3.25% in the same period, pushed up mainly by manufactured goods. These are the latest food figures that could be read: the National Office of Statistics, which compiles the price index, could not be reached on 15 October 2026. The IMF projects overall inflation of 6.2% for 2026.

Official sources: Ministry of Finance (DGPP): 2026 finance bill presentation report · IMF DataMapper: inflation, Algeria

What is the poverty rate in Algeria?

5.5% of Algeria's people lived below the national poverty line in 2011, the latest figure on World Bank Open Data, read on 15 October 2026. At the international extreme poverty line of US$3.00 a day (2021 prices), the 2011 figure is 0%.

Both figures come from the 2011 household consumption survey and are now old. No newer official poverty figure was found on Algerian government sites checked on 15 October 2026; the National Office of Statistics website could not be reached.

Official sources: World Bank: poverty at national lines, Algeria · World Bank: poverty at $3.00 a day, Algeria

Is Algeria cutting income tax (IRG)?

The 2026 finance bill included a downward revision of the IRG income tax rate, under its Articles 9 and 11, according to the Ministry of Finance's 2026 finance bill presentation report.

IRG (impôt sur le revenu global) is Algeria's tax on personal income, including wages. Income taxes are forecast to raise 2,068.6 billion dinars in 2026, nearly half of the 4,327.1 billion dinars of non-hydrocarbon tax revenue. The report summarises the measure; the rates in force are in the finance law as published in the Official Journal. The figures are from the report presenting the 2026 finance bill to the National People's Assembly, which approved the bill on 18 November 2025, according to the Ministry of Finance.

Official sources: Ministry of Finance (DGPP): 2026 finance bill presentation report · Official Journal of Algeria

How fast are prices rising in Algeria?

In 2025, consumer price inflation in Algeria was 1.4%, according to the IMF. Its high point since 2005 was 2023, at 9.3%; its low point was 2005, at 1.4%. Middle East, North Africa, Afghanistan & Pakistan median: 1.9%; Algeria is 12th highest of 18. Of 165 countries with 2025 data, 124th highest.

How much do households in Algeria spend per person?

$1,969: that is household consumption per person in Algeria for 2025, according to the World Bank. It is the top of the series, which starts in 2005. Middle East, North Africa, Afghanistan & Pakistan median: $2,629; Algeria is 10th highest of 11. Worldwide: 88th of 124.

What is food insecurity in Algeria?

According to the FAO, moderate or severe food insecurity in Algeria was 17.6% in 2024. No year since 2015 has been lower. Across Middle East, North Africa, Afghanistan & Pakistan the middle value was 24.2%, and Algeria placed 9th highest of 13. Worldwide: 72nd of 135.