Electricity and water charges rose faster than South Africa’s headline inflation rate in the year to July, adding pressure to household budgets already affected by higher transport costs.
The Competition Commission’s latest Cost of Living Report recorded an 8.1% increase in electricity prices and a 10.1% rise in water tariffs over the period.
Both increases were above the annual consumer inflation rate of 4.3% reported for July.
Fuel prices also increased between January and July 2026 as higher international oil costs fed through to local pump prices. The commission said higher fuel and transport costs can raise distribution expenses for businesses and affect the prices of goods and services.
The figures show that households can face increases well above the average inflation rate because essential services account for a significant portion of monthly spending.
The South African Reserve Bank’s Monetary Policy Committee is scheduled to meet on 23 September. The latest inflation data and price pressures will form part of the economic conditions considered by the committee.
No decision on interest rates has been announced ahead of that meeting.
