Households in South Africa are facing severe financial difficulties as rising costs for utilities, commuting, and groceries consume an increasing share of their income, turning the cost-of-living crisis into a struggle for family purchasing power.
Recent household affordability data illustrates this problem despite a seemingly lower overall inflation rate. In August, the average cost of a food basket was R5,479.80, according to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD). Although this amount was 0.9% lower than in July, it remained 1.8% higher than a year earlier. Of 44 tracked products, 19 increased in price, while 25 decreased.
The group's director, Marvin Abrahamse, notes that families are not earning more income but are distributing existing funds across fixed expenses: housing, electricity, and transport. He emphasizes that the most essential items, such as rent or mortgage, electricity, and transport, are paid first, leaving only then a budget for food.
Abrahamse explains that food is usually purchased from the remaining funds, which often results in families buying less and less nutritious food. The group's calculations show how little might remain after paying basic bills: 'In August, electricity and transport took R3,183.45, which is 65.8% of a worker's salary, leaving R1,653.35 for food and everything else.' Thus, the affordability crisis is related not only to the price of bread or chicken but also to the competition between several unavoidable expenses for the same income.
The Competition Commission's cost of living report for August 2026 also highlights this situation, warning that fuel price shocks have consequences far beyond petrol stations. The Commission points out that the first half of 2026 was characterized by 'significant increases in fuel costs,' driven by geopolitical tensions and disruptions in global oil supply chains, exacerbated by exchange rate pressure.
The Commission notes that the rise in fuel and transport costs has spread not only to daily commutes but has also increased production, logistics, and distribution costs across the economy, creating additional pressure on essential goods. The challenge is to find a balance between the financial sustainability of vital services and the burden on households, especially when tariffs rise faster than inflation, and vulnerable populations do not receive effective support.
For workers, the issue boils down to whether income can keep pace with rising prices. Abigail Moyo, a representative of the United Association of South Africa (UASA) union, stated that households are already on the brink of collapse. She believes that rising fuel prices will only exacerbate the financial pressure on South Africans whose budgets are already severely constrained. Moyo insists that the solution cannot be for workers to absorb the increased costs themselves. She called on the government to review fuel pricing mechanisms, including fuel and slate taxes, and employers to recognize inflation-linked wage increases as necessary for workers' survival.
Pensioners feel particular pressure. At SASSA offices in Wentworth, Durban, pensioners are demanding an increase in the old-age grant to R5,000 per month, arguing that the current amount does not cover basic living needs. The maximum old-age grant is R2,400 per month, increasing to R2,420 for recipients over 75. Pensioner Quinton Eri describes the situation as extremely difficult: 'We barely make ends meet on 2400 rand. The cost of water keeps rising. We come to Sasa, and sometimes we sit here for two or three days because they are not working. Life has become a huge struggle. You can't even afford to buy and eat the food you get. The food we buy is not enough.' He added that buying meat has become a luxury, forcing people to eat chicken since they cannot afford mutton or beef.
Social activist Jean Chodry noted that pensioners are forced to cope with the responsibilities of supporting other family members. He believes that pensions should be doubled at minimum, as besides covering utilities, rent, and food, they also care for grandchildren. He stressed that the demand for R5,000 is not charity but a real necessity for survival.
A petition launched by Jay C Alex titled 'Support South African Pensioners to Restore Dignity and Respect' has gathered over 33,000 confirmed signatures calling for increased support for pensioners struggling with food, medicine, and electricity shortages.
The situation also affects children. The group calculated that a basic nutritious basket for a family of seven cost R6,597.25 in August, and the average cost of providing one child with basic nutrition was R961.96, while the child grant is R580. Abrahamse warned that when households are forced to sacrifice nutrition, the consequences go far beyond the monthly grocery bill. He described it as an intergenerational poverty trap that begins right at the table of the youngest children.
In Abrahamse's view, alleviating the situation cannot be achieved solely by lowering food prices; a significant impact on household purchasing power will come from reducing electricity and transport costs.