According to a report published earlier this year, Cape Town is one of the cheapest cities in the world for beer and cigarettes, with a basket costing around R230, including five 500 ml beers and two packs of cigarettes.
This is according to the Deutsche Bank’s Mapping the World’s Prices report for 2026, which analyses global price disparities, cost of living, and investment implications across major cities.
The Oasis Index, part of the Mapping the World’s Prices index, which measures the cost of cigarettes and alcohol, found that Australia and New Zealand are the most expensive countries in which to buy these products due to high taxes.
According to this index, Cape Town was ranked 62nd out of 69, which is among the cheapest across the globe, while Johannesburg was ranked 58th out of 69, slightly pricier than Cape Town but still ranking amongst the cheapest.
According to the latest Consumer Price Index (CPI) from Statistics South Africa (Stats SA), which tracks movements up to August of this year, beer inflation in South Africa is around 4.4% annually.
The CPI showed that beer prices have increased the most in Cape Town. Since late 2024, total beer prices have been up by nearly 12% (an index level of 111.9).
Between July and August 2026 alone, prices rose by 1.2%, bringing the annual price rise to 4.4%.
Over the past year, Johannesburg’s annual beer inflation matched Cape Town’s at 4.4%. However, between July and August 2026, prices dropped slightly by 0.2%.
Overall, beer prices in Johannesburg have increased by 7.4% since late 2024. Still, the city of Johannesburg is tracking along the national average.
Durban has experienced the lowest price hikes of the three cities. Over the past year, beer prices rose by only 2.5%.
Similar to Johannesburg, Durban also recorded a minor 0.2% decrease in August, with prices rising 7.3% overall since late 2024.
