SA households at breaking point, essential costs overwhelm monthly incomes

South African households are on the brink as the soaring costs of essential services, such as electricity, transport, and food, consume a significant portion of their monthly income, leaving little room for anything else. Despite a slight dip in headline inflation, the average cost of a food basket rose by 1.8% in August compared to a year ago.

Of the 44 tracked food items, 19 saw their prices increase while 25 saw a decline. However, many families prioritize their expenditures, paying for rent, electricity, and transport first, leaving only a small amount for food. Electricity and transport alone accounted for 65.8% of a worker's wage in August, leaving only R1,653.35 for all other expenses.

The Competition Commission's report highlights that the fuel crisis has far-reaching implications beyond just petrol prices, driving up production and distribution costs across the economy. This has resulted in higher living costs for vulnerable households, particularly pensioners who are calling for an increase in the Older Persons Grant from the current R2,400 to R5,000 per month.

Community activists emphasize the need to double the pension amount to ensure pensioners can meet their basic needs, including rent, utilities, and food, which have all become increasingly expensive.