Mbabane – Electricity prices have risen by 15.1% over the past year, while liquid fuel prices have surged by 35.6%, exposing the pressure that energy costs continue to exert on households and businesses despite Eswatini’s annual inflation rate remaining below 3%.
The Central Statistical Office (CSO), in its Consumer Price Index (CPI) report released on October 15, 2026, revealed that annual inflation increased marginally from 2.8% in August to 2.9% in September, with housing, water, electricity, gas and other fuels making the largest contribution to the increase.
The figures come amid a series of fuel price adjustments and an electricity tariff increase implemented in April, raising concerns about the cost of keeping households running and businesses operating. The latest figures show that while overall inflation remains relatively low, selected essential costs are increasing much faster.
Electricity prices recorded annual inflation of 15.1%, while liquid fuels increased by 35.6%. Fuels and lubricants for personal transport rose by 25.1%, adding to the cost pressures facing motorists, commuters and businesses reliant on transport.
The CSO attributed 1.7 percentage points of the overall 2.9% inflation rate to housing, water, electricity, gas and other fuels, which recorded annual inflation of 5.9%. Transport contributed another 0.7 percentage points, with annual inflation of 4.2%.
Clothing and footwear contributed 0.2 percentage points, recording annual inflation of 4%.
The figures suggest that energy-related expenses remain among the principal sources of inflationary pressure, even as several other categories of goods and services experience more moderate price movements.
Fuel prices
The latest inflation figures follow a significant increase in domestic fuel prices, effective October 2, 2026.
Unleaded petrol rose from E25.97 to E29.40 per litre, while diesel increased from E28.85 to E32.25 per litre.
The adjustments added E3.43 per litre to both products, increasing the cost of filling vehicle tanks and potentially raising operating expenses for transport operators, retailers and other businesses that depend on fuel.
According to the CSO, the annual inflation rate for liquid fuels reached 35.6% in September, while fuels and lubricants for personal transport recorded 25.1%.
Transport inflation also accelerated significantly, rising from 0.5% in September 2025 to 4.2% in September 2026.
The increase was mainly attributed to fuels and lubricants, alongside passenger transport by air.
Eswatini’s reliance on imported petroleum products leaves domestic fuel prices exposed to changes in international oil markets, regional supply costs and exchange-rate movements.
The impact extends beyond motorists, as fuel is an important input in the movement of agricultural produce, food, construction materials and other commodities.
When transport and distribution expenses increase, businesses may face pressure to adjust their prices to recover additional costs.
However, the September figures alone do not establish how much of the increase in prices across the economy was directly caused by fuel costs.
Electricity tariff
Electricity costs are another major component of the inflation picture, with the CSO recording annual electricity inflation of 15.1%.
The increase follows the electricity tariff adjustment implemented on April 1, 2026, after the Eswatini Energy Regulatory Authority (ESERA) approved an average increase of 13.61% for the 2026/27 financial year.
The Eswatini Electricity Company (EEC) had initially applied for a 20.67% increase, citing financial and electricity supply cost pressures.
Government subsequently intervened with funding intended to cushion households and businesses against the impact of higher tariffs. Following the intervention, the average increase was revised downwards to 11.74%. The lifeline tariff increase was limited to 6%.
The adjustment reflects the challenge of balancing the financial sustainability of the electricity utility with the affordability of power for consumers.
For households, electricity is a recurring expense that competes with food, transport, rent, school requirements and other basic needs.
For businesses, electricity is a production and operating cost that can affect manufacturing, refrigeration, retail operations and service delivery.
The pressure is particularly significant for energy-intensive businesses, where electricity costs form a substantial part of total expenditure.
Although the government intervention reduced the average tariff adjustment, the CSO’s figures show that electricity prices remain significantly higher than they were a year ago.
Food inflation
Despite the sharp increases in selected energy costs, the September report contains a more moderate picture for some household expenses.
Food and non-alcoholic beverages recorded annual inflation of just 0.1%, suggesting that prices in this category were broadly stable compared with September 2025.
Communication recorded no annual price increase, with inflation at 0%.
Health inflation also eased substantially, falling from 3.5% in September 2025 to 0.2% in September 2026. The CSO attributed this to zero growth in medical services and slower increases in pharmaceutical prices.
Alcoholic beverages, tobacco and narcotics recorded annual inflation of 2.5%, down sharply from 10.2% a year earlier. The slowdown was driven by slower price increases in beer and negative price growth in wine.
These figures provide some relief in the broader cost-of-living picture, particularly for consumers concerned about food and healthcare expenses.
However, low food inflation does not necessarily mean that food has become cheaper. It means that prices in the category were almost unchanged on average compared with the same month last year.
Households may therefore continue paying more for food than they did in previous years, even when the annual inflation rate is close to zero.
MONTHLY PRICES SHOW MIXED MOVEMENTS
On a month-to-month basis, inflation remained unchanged at 0.2% between August and September 2026.
The overall Consumer Price Index stood at 126.31, using June 2020 as the base period of 100.
The monthly figures showed that clothing and footwear prices fell from an increase of 0.4% in August to a decline of 1% in September, reflecting lower prices for garments and footwear.
Recreation and culture moved in the opposite direction, rising from negative inflation of 0.8% to positive inflation of 0.4%, mainly because of changes in prices for pets and related products, as well as stationery.
Prices for furnishing, household equipment and routine household maintenance fell by 0.4%, following a 0.4% increase in August.
Goods inflation stood at 3.6%, compared with services inflation of 1.9%, indicating that prices for goods were rising faster than those for services over the year.
Annual headline inflation was 0.1 percentage points higher than both the 2.8% recorded in August 2026 and the 2.8% recorded in September 2025.
PRESSURE MAY CONTINUE
The energy price outlook remains an important consideration for households and businesses as Eswatini enters the remainder of the 2026/27 financial year.
According to ESERA, the government has committed E100 million for 2026 and another E100 million for 2027 to help mitigate the impact of electricity tariff adjustments. Part of the funding is intended to cushion consumers against future tariff shocks.
The effectiveness of such interventions will be important in determining how much of the pressure from electricity supply costs is passed on to consumers.
Fuel prices will also remain sensitive to developments in international oil markets and the costs of importing petroleum products.
For households, the central concern is whether incomes can keep pace with the prices of essential goods and services. For businesses, higher energy and transport costs may affect operating margins, investment decisions and the prices charged to customers.
While the September inflation rate of 2.9% indicates a relatively modest increase in the overall consumer price level, the substantial rises in electricity and fuel prices demonstrate why the headline figure alone does not tell the full story of the cost of living.
The latest CSO figures highlight a clear contrast: overall inflation remains below 3%, but some of the essential costs that households and businesses cannot easily avoid are increasing at considerably faster rates.
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