The South African (SA) Rand edged up in early trade on Wednesday, as traders awaited inflation and retail sales data that will shed light on the country’s economic outlook.

Rand traded at 16.39 against the Dollar, about 0.2% firmer than its previous close.

Domestically-focused traders are waiting for December consumer inflation and November retail sales.

Economists polled by Reuters expect annual inflation will come in at 3.6% for December, up from 3.5%.

This is inline with Nedbank economists who anticipate inflation will rise slightly from 3.5% in November to 3.6%, mainly due to higher fuel prices.

The bank’s economists said petrol prices increased by 1.4% during the month, leading to a smaller year-on-year decline in fuel costs.

“On the positive side, food inflation is likely to ease marginally from 4.4% to 4.3% as softer cereal and other food prices offset the impact of persistent meat price increases linked to foot-and-mouth disease,” said Nedbank in a research note.

–Reuters–