Contributions to headline inflation in SA

South African headline inflation dropped to 5.4% year-on-year in June from 6.3% in May, driven by a drop in the contribution from transport inflation (from lower fuel prices).  Core inflation (headline excluding food, non-alcoholic beverages, fuel and energy) remains above the mid-point of the inflation target (at 5% year-on-year), although alternative measures of broad-based inflation pressures have remained materially higher than core.

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