The Competition Commission has released its first Cost of Living (COL) Report, offering a comprehensive analysis of the rising costs of essential goods and services in South Africa. The report, published on Thursday, expands on the Commission’s earlier Essential Food Price Monitoring (EFPM) Report, first introduced in 2020 to track food prices.
Unlike the EFPM Report, which focused mainly on staple food items, the new COL Report takes a broader approach. It now includes critical household expenses such as electricity, water, rentals, healthcare, education, internet usage, funeral policies, minibus taxi fares and petrol. It also considers the impact of interest rates on household budgets.
The Commission said the report is designed to give a clear picture of affordability challenges facing South Africans, particularly low-income households. Chief Economist James Hodge described it as “a vital tool to understand the true drivers of the cost of living crisis.”
He added: “If we can pinpoint where costs are rising unfairly, we can act to protect consumers from excessive pricing and market inefficiencies.”
Spokesperson Siyabulela Makunga stressed that the findings go beyond statistics. “This report tells the story of ordinary families struggling to make ends meet,” he said. “By putting the facts in the open, we empower society to demand fairness and accountability.”
The findings highlight steep increases in basic services. Between 2020 and March 2025, electricity prices surged by 68%, while water tariffs rose by 50%—both well above the general inflation rate of 28%. Housing rentals increased more moderately, remaining below inflation.
Healthcare costs also emerged as a major concern. The report shows that general practitioner (GP) fees spiked in 2025, with only 16% of South Africans covered by medical aid. On transport, the Commission found that minibus taxi fares usually rise with petrol price hikes but never come down when fuel prices fall — a trend described as “sticky-downwards.”
Education costs are also climbing sharply. Primary education inflation rose by 37%, while secondary school costs increased by 42%, both outpacing overall inflation. On a more positive note, internet usage costs remained below inflation, with mobile data prices stable since the Commission’s 2019 Data Services Market Inquiry. Funeral policies also rose below inflation, providing some relief to low-income households that rely heavily on them.
The COL Report further examines the price spread between producers and retailers for essential food products. While canned pilchards showed relatively stable margins, items such as eggs, chicken, bread, sunflower oil and maize meal displayed widening retail margins and stubbornly high prices.
Egg producer prices remain high despite the poultry sector’s recovery from the 2023–2024 avian flu outbreak. Sunflower oil retail prices continue to climb even though producer prices have been falling since early 2025, signalling limited cost pass-through to consumers. Maize meal prices rose from R38.48 in late 2024 to R43.04 by May 2025, despite declining white maize prices during the harvest season.
The Commission said the COL Report should be used by government, business and civil society to address the economic pressures facing households. “Our aim is to shine a light on the realities of rising costs,” Makunga said. “This is how we ensure markets work better for everyone, not just a few.”
