If your salary went up by 4%, you kept pace with inflation. Just. But your electricity did not go up 4%. Neither did your water, your medical aid, your insurance, or your rates. When you add it all up, the real cost of your life in 2026 is climbing far faster than any pay increase most South Africans will ever see, says the writer.
Last week, the people who control interest rates in South Africa made a decision that will cost you money every single month.
They raised the repo rate by 0,25%, moving the prime rate to 10,50%. That does not sound like much. But it is just the latest item on a very long list of things going up this year – most of them rising at two, three, or five times the rate of inflation. And almost none of it is your fault.
If your salary went up by 4%, you kept pace with inflation. Just. But your electricity did not go up 4%. Neither did your water, your medical aid, your insurance, or your rates. When you add it all up, the real cost of your life in 2026 is climbing far faster than any pay increase most South Africans will ever see. That is why it feels like you are working harder and still falling behind. Because you are.
Here is what that 0,25% adds to your home loan every month:
