The cost of a beer in Cape Town, Joburg, and Durban
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.
Cape Town may be the best place to buy a holiday home
In terms of affordability and cost-of-living standards, the Deutsche Bank report found significant price changes over the last decade, with globalisation failing to achieve price equalisation.
This is due to various factors, including taxes, regulations, currency fluctuations, and inflation.
Deutsche Bank Research Institute senior financial researchers and macroeconomists Adrian Cox and Jim Reid said that Cape Town would also be the best city to buy a holiday home in, when factoring in scenery, climate and cost.
The researchers said that Cape Town is 15 times cheaper than Hong Kong, per square meter.
In terms of housing prices, Hong Kong has seen prices decrease by about 10% since COVID-19, but it still ranks below Zurich and Geneva.
The report highlighted that Tokyo has become more affordable than other developed cities, making it an attractive investment destination over the next decade.
On the other hand, it showed that Tel Aviv has become one of the most expensive cities, driven by a strong shekel and thriving tech and defence sectors.
It highlighted that while major financial centres offer high salaries, the cost of living can reduce disposable income.
The data also suggests that Zurich and Geneva provide the best balance between income and expenses. German cities like Munich and Frankfurt are also becoming more livable, according to the report.
The data indicates that the US appears to be at the peak of its price cycle, which could lead to a decline in pricing power in the future.
Loading ...