Money Desk
Cheaper food offers limited relief as transport costs rise
South African households face mixed economic news as lower food prices for maize and fruit are offset by rising transport and rental costs.
Petrol and diesel users in South Africa will receive temporary relief from 4 November 2026, with the fuel levy cut by R1.50 a litre on petrol and R3 a litre on diesel until 5 January 2027. The reduction follows annual price growth of 4.5% in September 2026, according to Statistics South Africa.
| Measure | Change |
|---|---|
| Prices in September 2026 | 4.5% year on year |
| Petrol fuel levy | Cut by R1.50/l |
| Diesel fuel levy | Cut by R3/l |
The levy reductions will lower the tax included in each litre of petrol or diesel bought during the two-month period. The outlook beyond the temporary measure remains tied to movements in global oil markets. “A lot depends on whether oil prices drop next year,” PSG economist Johann Els said.
Food, Transport and Rent
South African households saw lower prices for maize meal, fruit and nuts, but faced higher transport and rental costs, according to Statistics South Africa figures.
| Category | Price change |
|---|---|
| Maize meal | 8.6% cheaper year on year |
| Fruit and nuts | 4.8% cheaper year on year |
| Transport | 10.8% higher year on year |
| Rent | Up 3.9% in Q3 2026 |
Maize meal prices were 8.6% lower than a year earlier, offering some relief on a staple food. Fruit and nuts were 4.8% cheaper over the same annual comparison.
Transport costs moved in the opposite direction, rising 10.8% from a year earlier. That increase added pressure for households relying on taxis and other public transport. “Taxi and public transport costs have also gone up, but there is little sign yet of price rises spreading to other things,” PSG economist Johann Els said.
Rent increased by 3.9% in the third quarter of 2026, raising another regular household expense. The effect on individual budgets depends on how much households spend on the food categories, transport and rent.
Fuel Costs Squeeze Budgets
South African motorists faced sharply higher fuel costs than at the start of 2026. Petrol had increased by R6.13 a litre since January, while diesel had risen by R10.66 a litre.
The diesel increase was R4.53 a litre greater than the rise in petrol. For households, each litre bought cost R6.13 more for petrol or R10.66 more for diesel than in January, before accounting for differences in fuel consumption.
Inflation Outlook Remains Uncertain
PSG economist Johann Els expects South Africa’s inflation rate to exceed 5% in both October and November 2026.
