Lower oil prices cause South Africa's headline inflation to fall

South Africa's headline inflation has dropped significantly in recent months. Lower oil prices seem to have a significant impact on headline inflation in SA. Headline inflation is significantly below SARB's reference rate, core inflation has been extremely steady, right in line with the repo rate at 5.75%. 

SARB's main problem in coming months will likely be to assess whether or not core inflation will remain this high. We believe this combination ofstubborn high core and low headline inflation may prevent SARB from changing policies anytime soon," says RBC Captial Markets.