Why Everyday Prices Feel Higher Despite South Africa’s 2.8% Inflation Rate

If you’ve looked at your grocery bill or school fees lately, the official 2.8% inflation rate might seem oddly low. That’s because while South Africa’s inflation data gives us a national average, it doesn’t always mirror what’s happening in your personal budget.

Statistics South Africa recently released April’s Consumer Price Index (CPI), showing a small increase from 2.7% in March to 2.8% in April 2025. But for many households, the cost of living feels far steeper — and that’s not your imagination.

This disconnect arises because the CPI is based on a standardised “basket” of 391 goods and services. But not every household spends the same way. Some people spend more on food, others on rent, school fees or healthcare — and these categories don’t all rise at the same pace.

What’s Really Driving the Increase?

The key culprits behind April’s rise in inflation include:

• Housing and utilities

• Food and non-alcoholic beverages

• Alcohol, tobacco, restaurants, and

• Accommodation services

While overall inflation remains below 3%, categories like food and services may have surged far more, impacting households differently depending on their spending habits.

How to Calculate Your Own Personal Inflation Rate

Luckily, Stats SA has made it possible for you to work out your own “inflation experience”. On its website, the agency offers a downloadable Excel guide to help South Africans calculate their personal inflation basket.

Here’s how it works:

1. Pick the Relevant Items

Start by identifying the items you spend money on from the official dataset of 391 products. If you’re calculating inflation for school-related expenses, for instance, search for items like textbooks, school uniforms, or sporting gear — even if they fall under different categories like clothing or recreation.

2. Use the Weights

Each product has a weight assigned to it, reflecting its contribution to the national CPI. For example, a school jersey has a weight of 0.07%. Stats SA calculates a total weight for education-related items at 3.61%.

3. Adjust for Your Basket

To find how much weight an item carries in your custom basket, divide its official weight by the total category weight. In the example above, the weight of a school jersey becomes 0.07 ÷ 3.61 = 0.020. Do this for each item you spend on.

4. Track Monthly Price Changes

Record the monthly price increase or decrease for each item. Multiply that change by the item’s adjusted weight to see its impact on your overall personal inflation rate.

Why It Matters

Calculating your own CPI can give you better insights into why your monthly expenses feel out of sync with national statistics. It’s a handy tool, especially when planning budgets, negotiating salary increases, or understanding your financial stress points.

In a time where economic uncertainty is high and household spending feels tighter, knowing your real cost-of-living increase can be more empowering than relying on averages.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com