This graph shows huge price hikes for municipal water, lights and other taxes
The South African Reserve Bank has noted a big increase in government’s administrative prices over the last 10 years, with these increases now far surpassing the headline inflation rate.
Presenting the central bank’s annual report to parliament on Thursday (9 October), Reserve Bank governor Lesetja Kganyago said that headline consumer price inflation (CPI) since 2010 stands at 68%. By comparison, municipal rates and taxes are up 118%, electricity is up by 177%, and water is up 213%.
“The data shows that inflation is contained elsewhere in the economy, but the prices that are actually controlled by different arms of government have been rising faster than the actual inflation,” he said.
The latest annual data as of the end of August 2020 shows:
- Headline CPI – 3.1%
- Electricity – 6.2%
- Rates and taxes – 4.6%
- Water – 10.1%
South Africa’s municipal rates increase has been a serious point of contention amid a spike in load shedding and other service delivery issues.
The City of Johannesburg says it has been an upsurge in customer queries for bills issued during the lockdown around increased prices.
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