Fuel inflation is still off its early-  Page 3 of 8  year highs, while the modest gain in electricity prices in July 2017 has improved the overall year-on-year CPI comparison. However, not all of the inflation slowdown is attributable to these transitory factors.
Encouragingly, after a long upward drift, core inflation fell from a peak of 5.9% last December to 4.6% in July. Furthermore, this moderation was stronger than both the market consensus and the SARB expectations at the start of the year, as evidenced by the regular downward adjustments to our inflation projections.