Report reveals rising costs outpacing household income

Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024.

The latest cost of living report by the Competition Commission paints a worrying picture of South African households. The second edition of the report highlights how rising food, electricity and transport costs continue to outpace income growth.

This has disproportionately affected lower income households as they spend a bigger share of their income on the basics.

The Commission’s economist Andiswa Sibhukwana says persistent food inflation and administered costs also make it increasingly difficult for households to make ends meet.

“In conclusion, we’ve seen that the overall trends of cost of living reflect that the cost of living pressures in South Africa remain structurally embedded despite moderation in headline inflation. We’ve also seen that essential services, particularly electricity and water, continue to increase faster than overall CPI, placing pressures on household budgets. Education prices are also increasing higher than average prices.”