JOHANNESBURG (Reuters) -The South African rand edged up in early trade on Wednesday, as traders turned their attention to inflation data for clues on the country’s economy ahead of an interest rate decision on Thursday – the last one for the year.
At 0725 GMT the rand traded at 17.1550 against the dollar, about 0.2% firmer than its previous close.
Domestically-focused traders are waiting for October consumer inflation data 0800 GMT and September retail sales at 1100 GMT.
Economists polled by Reuters expect annual inflation will come in at 3.7% for October, up from 3.4%.
Nedbank economists anticipate a marked acceleration to 3.8%. “Food prices are at peak levels, with the upside driven mainly by meat prices reflecting the ongoing challenges relating to foot-and-mouth vaccinations, while all other categories are showing signs of moderation,” the bank’s economists said in a note.
Retail sales are forecast to rise from 2.3% in August to 3% in September, based on Nedbank’s forecasts.
“The positive momentum in sales is being supported by a low base, more subdued inflationary environment, lower interest rates, and easing debt service costs, all of which have lifted real wages and boosted discretionary spending,” Nedbank said.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.4%.
South Africa’s benchmark 2035 government bond was firmer in early deals, as the yield fell 1.5 basis points to 8.66%.
(Reporting by Anathi Madubela. Editing by Jane Merriman)
