| Summary: | Abstract The high cost of living is a major challenge for Ivorian consumers. This paper seeks to explain this issue using Principal Component Analysis (PCA), Hierarchical Ascending Classification (HAC), as well as linear, regularized (Lasso, Ridge, Elastic Net), and generalized regression. The aim is also to identify the key determinants contributing to this phenomenon. Cluster analysis revealed three distinct periods characterized by different spending levels and economic and social priorities: Group 1: January 1997 to January 2003; Group 2: February 2003 to October 2012; Group 3: November 2012 to December 2023. Education emerged as the most discriminating factor, followed by closely related indices (FC, FHR, RH, MGS, CPI, HWE, Com, RC). These distinct periods particularly reflect changes in education policies, budget allocations to education, and variations in educational performance. Compared with Groups 1 and 3, the CPI increased by an average of 53.074%. This implies that the real value of 100000 FCFA is now equivalent to 65326.971 FCFA. An adjustment to restore purchasing power would require 153,076.13 FCFA. The study also revealed strong multicollinearity among the indices. The most significant variables influencing the CPI are FNAB, HWE, Tr, RH, MGS, and Edu, all of which are positively correlated with CPI. This suggests that an increase in any of these factors leads to a rise in CPI. Consequently, the high cost of living currently experienced by households is not solely driven by food expenditures but also by these broader economic variables.
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