-
Graphic depicting inflation
A Competition Commission report has found that inflation on essentials is rising faster than wages, with low-income households being hit the hardest.
The Cost of Living Report covers the period between 2020 and March 2025.
The study expands on the original Essential Food Price Monitoring Report that was launched in 2020 to monitor and track the prices of selected essential food items in the country.
The report revealed that the price of non-food items like water and electricity have risen above inflation; contributing to workers spending almost two-thirds of monthly earnings on necessities.
Economist at the commission Andiswa Sibhukwana says: “In essence, the Cost of Living Report has highlighted key elements. It’s basically alluded to the rising economic strain on households. Households have faced deep financial pressure, especially low low-income communities. There has been inflation on essential goods, which is outpacing wage growth, therefore reducing the purchasing power of consumers and then the food and alcoholic beverages making over 40% of spending for households, making future inflation particularly harmful.”
The commission noted that minibus taxi fares tended to increase only when there was a major spike in petrol prices, adding that they are seldom reversed once petrol prices decrease.
At the same time, the cost of funeral policies came in significantly below overall inflation, which it described as encouraging given their importance among low-income households.
