Prices of essential utilities such as electricity and water have risen above the national inflation rate for the past six years.
The Competition Commission has presented a shocking picture of the cost of living in South Africa, revealing that the prices of essential utilities such as electricity and water have risen more than the national average for the past six years.
The Commission released the second Cost of Living (CoL) report on Wednesday, 1 April, which is no April Fool’s joke, as many South Africans are feeling the pressure of the economic crisis.
The report shows how the prices of basic goods and services have changed since 2020, and what this means for household budgets.
Electricity
According to the report, from 2020 to January 2026, electricity prices have increased by about 85% and water prices by about 68%.
This is well above general inflation, which has increased by 30% over the same period.
“The persistence of this increase reflects serious structural challenges within the utility sector, including aging infrastructure, high debt burdens, operational inefficiencies, and the need for continued investment,” the Commission said.
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Selected foods
The CoL report also examined the gap between what producers receive and what consumers pay for selected foods, including canned pilchards, eggs, individually frozen chicken (IQF), sunflower oil and maize.
In this report, the “spread” is the percentage difference between the product price and the selling price. The Commission examines the spread to see how price changes move along the value chain and where the gap is increasing or decreasing,” said the Commission.
“The spread may suggest “rocket and feather” prices, where processors or retailers raise prices quickly when costs rise but lower them slowly when costs fall.”
Important foods include:
- Eggs: By mid-2025, producer prices fell, but retail prices fell more slowly. This suggests that the price reduction was not passed on to consumers immediately.
- IQF chicken: Producer prices were broadly stable at around R45, but retail prices rose from R96.38 to R101.56 per 1.5kg between June and December 2025.
- Maize meal: The price of maize meal has dropped from R22.16 in May 2025 to R14.49 per 2.5kg in December 2025. Producer prices of maize meal have not fallen by the same amount, and retail prices are still high. The sales forecast was 37% in November 2025.
- Sunflower oil: Sales prices were generally slow to reflect changes in lower costs. Sales prices tend to respond to cost increases. However, they do not seem to fall when costs decrease. This issue of price stickiness is a concern.
Health care
The report showed that health care has also had an impact on South Africans.
Primary health care: General practitioner (GP) consultation costs have risen faster than general inflation and remain high in 2026. GP fee increases in 2026 are expected to be broadly in line with medical inflation at around 4.2%.
Education
According to the report, parents with school going children also face a heavy burden.
As of 2020, the cost of primary education has increased by 37%, while secondary education has increased by 42%, both above inflation.
The commission links this increase to inadequate government funding, which obliges schools to compensate for performance deficiencies through increased fees.
The price of fuel
The report also touches on the price of fuel, revealing that, between April 2025 and January of this year, petrol prices stabilized after fluctuating sharply in previous years.
Prices fell in 2025 and were stable in January. Taxi fares moved in line with petrol, and the gap between taxi fares and inflation generally narrowed.
The commission, however, said that renewed instability in the Middle East has pushed oil prices higher, which has resulted in a significant increase in fuel prices for April.
This has already raised the cost of fuel and transport since April.
Cost of living
“Tackling the cost of living requires a major review of regulated pricing systems, enhanced transparency and accountability in tariff payments and targeted protection for vulnerable households” said Commissioner Doris Tshepe.
“Without careful attention to how the prices of essential services are created and passed on to the economy, cost pressures are likely to persist, reducing household welfare gains and slowing economic recovery.”
‘Deep dive’
The commission said that each edition of the CoL report includes a “deep dive” into one key cost driver.
In the latest edition, the focus was on electricity tariffs.
“Electricity is a direct cost for households and a significant cost for businesses. When rates rise, they put pressure on household finances and can raise prices across the economy, including food and transport,” said the Commission.
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