If you’ve noticed your money running out faster than it used to, you are not imagining things. Inflation in South Africa has remained stubbornly high over the past few years – and although this has eased (if even oh so slightly) in 2025, it is still making everything from food to fuel more expensive. 

But what exactly is inflation doing to your household budget… and more importantly, what can you do about it? 

The Impact Of Inflation 

We are all familiar with the term ‘inflation,’ but to ensure that we are all on the same page as to its exact meaning, inflation can be understood as a rise in the overall price of goods and services. In South Africa, inflation is measured by the CPI (Consumer Price Index), which looks at how much more households are spending compared to the previous year. 

Even if you haven’t had a big expense lately, your day-to-day costs will no doubt have crept up without you noticing.  

Here are some examples of average price increases from early 2024 to mid-2025: 

• 🍞 Bread: Up ±11% 

• ⛽ Petrol: Up ±6% year-on-year, but with big monthly spikes 

• 🧀 Cheese: Up ±10% 

• 💡 Electricity: Up ±12% after another Eskom tariff increase 

• 🏥 Medical aid contributions: Up ±9% (on average) 

Our Advice? Know your inflation number. The national inflation rate is just an average. Your personal inflation rate depends on what you spend money on. For instance, if you drive a lot, rising fuel costs may hit you harder than someone who commutes by bus. What you can do is track your biggest monthly expenses and see where prices have gone up. This will tell you where to focus your cost-cutting efforts. 

The Silent Squeeze On Fixed Incomes 

If you’re retired, freelancing, or working in a job with no annual increases, it feels as though inflation hits even harder. Inflation slowly erodes your purchasing power, leaving you in the position of being able to afford much less with the same income. 

This is especially dangerous for pensioners relying on fixed monthly payouts, contract workers with irregular income, and households with high debt repayments. 

So, what can you do? Let’s unpack five practical ways you can fight back. 

5 Smart Ways To Fight Back 

You can’t control inflation… But you can control how you respond to it. Here’s how to protect your budget and stretch your rands further: 

1. Track It (be ruthless)  

Use our Monthly Personal Budget Calculator to record every cent you spend for a month. You might be shocked at where your money is going and knowing this information will help you cut what you don’t need. 

2. Renegotiate Fixed Expenses 

You could easily save hundreds a month just by switching to a more affordable plan, so call your insurance provider, cell phone company, or bank and ask if there are cheaper packages or discounts.  

3. Cut High-Interest Debt (don’t delay) 

Credit card debt and store accounts eat away at your disposable income with interest rates of 20% or more, so it makes sense to pay these off quickly. Even small extra payments each month will make a massive dent in the total interest you pay. 

4. Buy In Bulk (smartly) 

Dry goods, cleaning supplies, and long-life items can be much cheaper when bought in bulk, just avoid stockpiling things you won’t use in time. 

5. Create A Buffer 

Inflation makes emergency expenses even harder to cover. If you can, put aside a little extra each month to build a small emergency fund. Seriously, even R200/month will make a difference over time. 

Feeling Informed? 

Stay proactive, not panicked. Inflation is part of the economic cycle, and while it can be frustrating, it doesn’t have to derail your financial goals. The key is to stay proactive, reassess your budget regularly, and make small, consistent changes that protect your income from rising costs. 

We trust that this information, together with our free reports and calculators, will help you prepare your finances regardless of what the economy does next. And if you’re looking for more practical advice, budget-friendly ideas, and planning tools, then please take a few minutes to explore the rest of AA Inform.