If your salary went up by 4%, you kept pace with inflation. Just. But your electricity did not go up 4%. Neither did your water, your medical aid, your insurance, or your rates. When you add it all up, the real cost of your life in 2026 is climbing far faster than any pay increase most South Africans will ever see, says the writer.
Last week, the people who control interest rates in South Africa made a decision that will cost you money every single month. They raised the repo rate by 0,25%, moving the prime rate to 10,50%. That does not sound like much. But it is just the latest item on a very long list of things going up this year – most of them rising at two, three, or five times the rate of inflation.
How Inflation Affects Your Monthly Budget
From July 1, nearly every municipality is hiking electricity, water, rates, and refuse. Inflation is 4%. In eThekwini, water is going up nearly 14%. In Johannesburg, close to 14% when levies are included. In Pietermaritzburg, sanitation is up 13%. Electricity rises 9% nationally, but more in eThekwini. According to the South African National Treasury, the prices of electricity and water have increased significantly over the years.
Breaking Down the Increases
Here are some of the increases you can expect:
- On a R250,000 car deal over 72 months, add R38 more per month.
- Medical aid went up 7% to 9% at the big schemes – Discovery 7,2%, Bonitas 8,8%, Medihelp 8,46%.
- Vehicle and home insurance is up 10% to 20%, driven by vehicle theft, bad roads, and rising repair costs.
Poor management and, in too many places, corruption, are being billed straight to your account every single month. The South African Government has implemented various measures to try and mitigate the effects of inflation, but it seems like it’s not enough.
