A comprehensive view of household affordability

The Report builds on the Commission’s Essential Food Price Monitoring Report published in 2020 and extends the analysis beyond food to cover a wider range of goods and services that determine household well-being. These include electricity and water, residential rental, healthcare services, transport, education, insurance and internet costs – categories that together account for over 78% of total household expenditure among the lowest-income groups.

Administered prices and household budgets

The Report notes that administered prices such as electricity and water tariffs have increased significantly in recent years, contributing to higher overall household expenditure. Over the past five years, electricity prices rose by 68% and water tariffs by 50%, both outpacing the general rate of inflation of 28%. The increases reflect ongoing efforts to recover operational and infrastructure costs related to the provision of these essential services. The Report highlights the importance of balancing cost recovery with continued access and affordability.

Interest rates and household finance

The Report also examines how rising interest rates have affected households. Over the past three years, average bond repayments increased by approximately 28%, placing additional pressure on household budgets. The Report notes that while interest rate increases were necessary to manage inflation, the effect on disposable income is notable, especially among households with debt obligations.

The Report observes that rental prices have grown moderately compared to overall inflation, by 12% between 2020 and 2025, suggesting relative stability in the housing market. In the healthcare sector, general practitioner consultation fees have increased by 33% over the same period, broadly in line with inflation, with a slightly higher increase of 6.6% in 2025. This may reflect adjustments in response to higher input costs and healthcare demand.

The Report highlights that minibus taxis remain the most widely used form of public transport, carrying more than 10 million passengers daily. While taxi fares remained stable during the pandemic, increases were observed from mid-2022 onwards, largely following higher fuel and maintenance costs. Over time, fares have started to align more closely with general inflation trends.

Education costs have risen faster than general inflation. Between 2020 and March 2025, primary school fees increased by 37% and secondary school fees by 42%, compared to a 28% rise in headline inflation. These trends are attributed to factors such as higher operating costs in schools and increased demand for financial assistance through fee exemptions.

Access to the internet is increasingly recognised as an essential household service. Following the 2019 Data Services Market Inquiry, mobile data prices have stabilised, but wired internet costs (such as fibre) rose by 14% between 2022 and 2025, compared to only 1% for wireless connections. This difference may be linked to variations in infrastructure and pricing models across service providers.

Developments in essential food prices

The Report continues the Commission’s monitoring of food prices across the value chain. The analysis demonstrates that:

• Canned pilchards have remained relatively affordable, supported by stable retail margins despite producer cost increases.
• Egg prices, which rose during the 2023 avian flu outbreak, have started to ease as supply recovers.
• Brown bread and sunflower oil prices have shown limited downward adjustment following earlier increases, while maize meal prices remain relatively high despite recent declines in maize input costs.

The Commission continues to monitor price transmission dynamics across the food value chain to promote transparency and competitiveness.

Key findings

• Essential goods and services continue to account for the majority of household expenditure, especially among lower-income groups.
• Administered prices and interest rates have been key contributors to rising household costs.
• Education and digital access are emerging areas of concern for household affordability.
• Price transparency and competition remain important for ensuring fair outcomes in essential food markets.

Conclusion

The Report underscores the complex and interlinked factors influencing the cost of living in South Africa. By tracking developments across both food and non-food categories, the Report provides an evidence-based foundation for ongoing policy discussions aimed at promoting affordability, competitiveness, and inclusive economic participation.