The average salary in South Africa rose to R21,598 in June 2026, but real buying power has hit a two-year low due to rapid inflation.Despite nominal wage growth of 1.5% over six months, workers' purchasing power actually declined by 2.1% when adjusted for rising prices.Key drivers include surging utility costs (electricity, water, and rubbish collection) which increased 13.7% annually, outpacing overall inflation of 4.5%.Fuel prices also remain elevated, compounding financial strain on households.Economists warn that this trend threatens economic growth as consumers cut spending, reversing gains made over the previous two years.The data underscores a growing disparity between wage increases and living costs, leaving many South Africans struggling to afford basic necessities.