JOHANNESBURG (Reuters) -The South African rand was little changed in early trade on Thursday before the release of local producer inflation data.
At 0746 GMT the rand traded at 17.3500 against the dollar, less than 0.1% stronger than Wednesday’s closing level of 17.3650.
Economists polled by Reuters expect year-on-year producer inflation to edge up to 1.8% in August from 1.5% in July.
Nedbank economists said in a research report that food products were likely to exert upward pressure on the Producer Price Index due to an outbreak of foot and mouth disease which has driven meat costs higher.
But deflation in other categories like fuel should counteract that, they added.
Inflation in Africa’s biggest economy has been well-contained this year, allowing the central bank to cut its main interest rate three times. It paused its rate cuts at this month’s policy meeting while it assesses the impact of previous cuts.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.9%.
The benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 2 basis points to 9.105%.
(Reporting by Anathi Madubela;Editing by Alexander Winning)
