This lower inflation pass-through of currency depreciation to consumer prices is not unique to South Africa. It has been observed in other emerging countries.
Possibly, the lack of dynamism in demand around the world, the difficulties economies are experiencing in closing output gaps, and the very low inflation rates in the world’s major economies are reasons why the transmission channel of imported to domestic prices has been unusually muted. But perhaps because it is not yet well understood, this lower observed pass-through may indeed require increased vigilance.