For many South African households it is becoming increasingly difficult to make it through the month without cutting back on essential expenses. Food, fuel and electricity compete for the same money, while people still need to pay for transport, housing, school fees and other bills.
The cost to feed a household remains a major challenge for South Africans. According to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) September 2026 figures, the average household food basket costs R5 488,06, while a basic nutrition basket costs R6 655,29. The estimated monthly cost to feed a child is R970,27, compared to the child support grant of R580. This leaves a shortfall of R390,27 per child, before other essential expenses are even considered.
The figures underscore the pressure on households with limited income. A worker earning the national minimum wage of R30,23 per hour can earn approximately R5 239,46 per month, based on a calculation for a full-time work month. This is less than the cost of the average household food basket. Meanwhile, municipal service fees add further pressure: Tshwane's 2026/2027 tariffs include increases of 8,8% for electricity and 10% for water. Food prices also differ between cities: the measured food basket in Johannesburg was R347,93 more expensive in September than in Pietermaritzburg.
The latest available forecasts suggest that South African households should prepare for further price pressure, particularly regarding electricity, municipal services and possibly food. However, it is important to distinguish between increases that have already been approved and proposals that still await approval.
What could become more expensive?
Electricity – Eskom has proposed that electricity tariffs from one April 2027 increase by 8,83% for direct Eskom customers and 8,84% for municipalities that buy electricity from Eskom. The increases are still subject to approval by the National Energy Regulator of South Africa (Nersa).
Inflation – The South African Reserve Bank's October 2026 overview warns that inflation could remain elevated due to global energy and food cost pressure. The bank's forecast is that inflation could rise above five percent and only move closer to its three percent target later in 2027. The outlook for food prices is linked in part to possible El Niño drought conditions and higher fertiliser costs. This does not mean all food prices will necessarily rise, but there are still risks.
Food – The South African government warned that the El Niño weather phenomenon during the 2026/2027 summer season could bring lower rainfall and higher temperatures. This could damage agricultural production and later contribute to more expensive staple foods, such as maize. However, there is still uncertainty about the extent of any price increases.
Municipal tariffs – For the current 2026/2027 financial year, Tshwane has already implemented increases of five percent for property tax, 8,8% for electricity, 10% for water, five percent for sewerage and 4,1% for waste removal. These are already in effect increases and not forecasts for the next financial year. Tariffs for 2027/2028 will depend on future municipal budgets and approvals.
Is there light at the end of the tunnel?
Yes, there is some hope, but the latest figures do not suggest that wage increases will necessarily be enough to keep up with rising living costs.
According to the Bureau for Economic Research (BER) survey from September 2026, analysts, business people and union representatives expected average salary increases of 4,8% for 2027. The expectation for inflation in 2027 was meanwhile four percent. This means that an increase of 4,8% on paper could be slightly better than the expected average inflation, but it does not guarantee that every worker will receive that increase. The caveat is that this is a survey of expectations, not a guaranteed increase for all employees. The South African Reserve Bank has further warned that inflation could remain high into 2027 due to energy, food and other cost pressures.
What does that mean in rands and cents?
If a worker receives a four point eight percent increase, it would mean approximately the following:
| Current monthly salary | Four point eight percent increase | New salary before deductions |
|---|---|---|
| R10 000 | R480 | R10 480 |
| R15 000 | R720 | R15 720 |
| R20 000 | R960 | R20 960 |
| R25 000 | R1 200 | R26 200 |
| R30 000 | R1 440 | R31 440 |
This is before tax, pension and other deductions. If your personal expenses rise faster than four point eight percent, your money will still not stretch as far.
What about civil servants?
Civil servants on salary levels one to 12 have already received an increase of four percent from one April 2026. The existing multi-year wage framework determines that increases for 2026/2027 and 2027/2028 are linked to the consumer price index (CPI), with a floor and ceiling mechanism. The precise future increase must therefore be determined according to the applicable provisions.
Sources: Pietermaritzburg Economic Justice and Dignity Group, Parliament, South African Reserve Bank, South African government, City of Tshwane, Business Day, Bureau for Economic Research, South African government South African Reserve Bank, Business Day, Bureau for Economic Research, South African government, South African Reserve Bank
This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
