CC Cost of Living Report Mar2026

The Competition Commission’s first Cost of Living (COL) Report in September 2025 demonstrated that rising prices in essential goods and services have become a defining source of financial strain for South African households.1 It showed that inflation is not felt evenly across the income distribution, with low- and middle-income households disproportionately exposed because a larger share of their expenditure is devoted to necessities. Crucially, the report highlighted that prices of basic goods and services including administered prices and prices set in regulated or weakly competitive sectors tend to rise faster than overall inflation and, once elevated, seldom adjust downward.2 As a result, even when headline inflation moderates, the cost pressures faced by households remain firmly entrenched. 2. The second COL report is released against this backdrop of persistent living-cost stress. While headline CPI inflation has eased from its post-pandemic highs, this moderation has provided limited relief to households, as the prices of essential goods and services remain at historically elevated levels. This reflects structural features of the South African economy, including high inequality, subdued real wage growth, and limited The Competition Commission of South Africa. Cost of Living Report. August 2025. Available [Online] https://www. compcom.co.za/wp-content/uploads/2025/09/CC_Cost-of-Living-Report.pdf The Competition Commission of South Africa. Cost of Living Report. August 2025. Available [Online] https://www. compcom.co.za/wp-content/uploads/2025/09/CC_Cost-of-Living-Report.pdf International Monetary Fund. Boosting Growth and Prosperity in South Africa. March 2025. Available [Online]https://www. imf.org/en/news/articles/2025/03/10/cf-boosting-growth-and-prosperity-in-south-africa My Broadband. Shaun Jacobs. Electricity price failure in South Africa. January 2025. Available [Online] https:// mybroadband.co.za/news/energy/579954-electricity-price-failure-in-south-africa.html The Competition Commission of South Africa. Cost of Living Report. August 2025. Available [Online] https://www. compcom.co.za/wp-content/uploads/2025/09/CC_Cost-of-Living-Report.pdf scope for households to substitute away from essential consumption.3 3. As with the Essential Food Price Monitoring (EFPM) reports, each edition of the COL report will also provide a deep dive analysis into one food or non-food item.