The Competition Commission cost of living report

Lebohang Mabidikane, Director in the Competition Law practice, recently joined Leanne Manas on Morning Live to discuss the Competition Commission’s report, which highlights that essential goods and services price increases are significantly above inflation, with utilities such as electricity and water rising sharply over the past six years. Lebohang noted that the report paints a bleak picture for households in South Africa, with consumers’ buying power being rapidly eroded by price increases that are outpacing the average inflation rate. Lebohang further highlighted that the Competition Commission compared agricultural sector products across the value chain, from farm-level production costs to processing and retail. While there have been recent declines in production costs at the farm and processing levels, prices at the retail level have been slow to decrease or, in some cases, have not decreased at all. Lebohang added that consumer pressure is likely to increase, with no immediate relief in sight. This is the Commission’s second report, following one published last year, and the outlook shows little improvement, raising concerns that consumers continue to sustain increasing financial strain.