Low-income individuals (decile 1) have typically experienced higher inflation than the wealthiest group in South Africa (decile 10). Since the pandemic, low-income individuals have typically experienced higher inflation—about 2 percentage points more than the wealthiest group. But the poor experience much more inflation volatility – almost 5 times more than the rich. This is because food is the major contributor to the inflation experienced by South Africa’s poorest, while rich people consume a more diverse set of goods and services, with housing and utilities playing a larger role in driving their inflation outcomes, on average.
