SA COST -OF-LIVING CRISIS
inflation Competition Commission’s Cost of Living Report confirms that consumers face escalating costs – with water and electricity rising way above inflation.
Essentials that consumers spend their money on, including water, electricity and government school fees, have all increased above headline inflation in the past six years, with transport costs spiking this year, according to the Competition Commission’s third Cost of Living Report.
The report shows that headline inflation has been moderate (36% over six years), but that electricity and water prices continue to rise above headline inflation, putting significant pressure on household budgets, schools and businesses.
Why your bills are rocketing beyond inflation:
Why your bills are rocketing beyond inflation Competition Commission’s Cost of Living Report confirms that consumers face escalating costs – with water and electricity rising way above inflation.
The CompCom says petrol costs rose 26% in the first half of 2026. This affects consumers both directly and indirectly. Image: Waldo Swiegers/Bloomberg
Essentials that consumers spend their money on, including water, electricity and government school fees, have all increased above headline inflation in the past six years, with transport costs spiking this year, according to the Competition Commission’s third Cost of Living Report.
The report shows that headline inflation has been moderate (36% over six years), but that electricity and water prices continue to rise above headline inflation, putting significant pressure on household budgets, schools and businesses.
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Headline inflation measures the total increase in prices for all goods and services in an economy, including volatile categories like food and energy, which fluctuate significantly month to month.
Key increases across essential categories include:
• From January 2020 to July 2026, electricity increased by an estimated 100.5% “highlighting the disproportionate contribution of electricity costs to household expenditure”;
• In the same period, water costs reached approximately 85% cumulative inflation, even as the report noted that lower-income households spend as little as 0.9 % of their budget on this;
• The cumulative inflation for public primary school fees in fee-paying government schools over the six-year period increased to 46%, with fees at public high schools up 51% – this was attributed, in part, to rising municipal bill pressures on schools;
Prices of visits to GPs rose at a level close to inflation over the six-year period;
• In 2026, bond repayment inflation saw a substantial increase of 9.6% from January to July, higher than CPI (which was at 3.8% during the same period) – the report says this highlights the impact of higher interest costs on household disposable income and the overall affordability of credit;
• Petrol prices increased by 26% between January and July 2026, driven largely by the Middle East conflict; and
• Minibus taxi fares increased by 13% over first half of 2026, raising concerns that commuters may continue to face higher costs even if petrol prices decline, as taxi fares generally do not adjust downwards.
Food pricing dynamics
• Small Talk Daily analyst Anthony Clark, who tracks prices of soft commodities such as grains and oils, explains the pricing dynamic: because most food companies procure their input costs three to six months in advance, they have to work their way through inventory before new cheaper inventory starts coming into the system.