By 
Consumers in South Africa will have to dig deeper into their pockets as inflation keeps rising and the cost of living is becoming more and more expensive. Based on the stats, the breadbasket for households is shrinking every month.
Households will now feel the brunt of a sluggish economy following the disheartening report by Stats SA. Stats SA on Wednesday, 20 August 2025, released its month-on-month findings regarding the Consumer Price Index (CPI) for July 2025. According to Stats SA, annual consumer price inflation was 3,5% in July 2025, up from 3,0% in June 2025.
The CPI increased by 0,9% month-on-month in July 2025.
The main contributors to the 3,5% annual inflation rate were food and non-alcoholic beverages (5,7% and contributing 1,0 percentage point) and housing and utilities (4,3% and contributing 1,0 percentage point).
In July 2025, the annual inflation rate for:
• Goods was 3,2%, up from 2,3% in June 2025; and
• Services was 3,6%, down from 3,7% in June 2025.
The South African economy seems to be in the valley with a number of international companies leaving its market, which will lead to escalated unemployment rate and poverty. Affordability is becoming a serious challenge in the country, inflation on consumer products also a challenge.
Electricity tariffs rose by 8.9% while water tariffs rose by 7.1%. The working class together with the poor will find it hard to afford anything if this trajectory continues.
The Economic Freedom Fighters (EFF) have noted with concern the report by Stats SA citing that the cost of living continues to rise in ways that are unsustainable for the working class and the poor.
“While the inflation rate remains within the South African Reserve Bank’s (SARB) target band of 3 to 6%, this offers no real comfort to millions who live in poverty. Inflation at 3.5% represents a direct erosion of household incomes in a country with a high unemployment rate. Rising prices, particularly of food and utilities, intensify the suffering of unemployed youth, retrenched workers, and grant-dependent families,” said the Spokesperson of the EFF Sinawo Thambo.
