Braai budget gets burned: Inflation's heat is cooking households' finances

Cape Town households may be seeing softer fuel prices, but rising meat costs and insurance premiums are quietly tightening budgets, even as inflation in the Western Cape remains relatively subdued.

Annual consumer price inflation in the province was 3.6% in January, slightly above the national rate of 3.5%, according to the latest Consumer Price Index release.

“Annual consumer price inflation was 3,5% in January 2026, down from 3,6% in December 2025,” Statistics South Africa said.

While the headline figure suggests price growth remains contained, the breakdown tells a different story for many households.

Meat prices in the Western Cape climbed 12.6% year-on-year in January, significantly outpacing overall food inflation of 4.3% in the province. For a city where braais are part of everyday social life, the jump translates directly into higher grocery bills.

Food and non-alcoholic beverages remain among the main contributors to overall inflation nationally, alongside housing and utilities and insurance and financial services.

Insurance and financial services in the Western Cape rose 7.7% year-on-year — more than double the provincial headline rate. For homeowners and vehicle owners, rising premiums have become an increasingly significant fixed monthly cost, particularly in a region exposed to extreme weather events and high property values.

Nationally, housing and utilities increased 4.8% year-on-year. Statistics South Africa noted that housing and utilities contributed 1.2 percentage points to the annual inflation rate, making it the largest contributor.

Transport provided some relief. In the Western Cape, transport inflation declined 0.7% year-on-year, driven largely by a 3.9% drop in fuel prices. Nationally, the CPI increased by 0.2% month-on-month in January.

The figures highlight a familiar pattern: while overall inflation appears moderate, essential goods and services are rising faster than the headline rate. For many Cape Town residents, savings at the petrol pump are offset by rising food and insurance costs — expenses that are harder to cut and form part of fixed monthly budgets.

The January data suggests that although inflation remains contained on paper, everyday pressures remain firmly in place for households navigating the cost of living in 2026.

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Cape Argus