By Rorisang Modiba
- Prices for basics like food, water and power have gone up faster than salaries, leaving many families with little money for food.
- The Competition Commission says companies must stop unfair pricing and the government must help keep water and electricity costs down.
The Competition Commission has warned companies to stop overcharging South Africans as the cost of living keeps rising.
In a report released in September, the commission said poor families are struggling the most as prices for food, electricity, water and transport climb higher each year.
Nelisiwe Khumalo from the law firm Cliffe Dekker Hofmeyr said prices for basic needs have risen much faster than salaries.
“In the past five years, electricity prices went up by about 68% and water by 50%, while most people’s pay stayed the same,” she said.
Many families now spend more than half of what they earn on electricity and transport, leaving very little for food and other needs.
The report said prices shoot up quickly when costs rise but don’t come down when costs drop.
This “rocket and feather” pattern has been seen in bread, sunflower oil and taxi fares.
The commission said weak competition between companies allows prices to stay high even when costs fall.
It wants businesses to be honest about their prices and for the government to keep an eye on water and electricity tariffs.
The commission has also started checking the cost of internet access, saying it is now a basic need like food and transport.
Khumalo said the government and businesses must work together to lower costs and make life easier for ordinary South Africans.
Pictured above: South Africans are struggling with the rising cost of food, power and transport.
Image source: File
