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

Rand traded at 16.0125 against the Dollar, little changed from its previous close of 16.0175.

Domestically focused traders are waiting for January consumer inflation data and November retail sales.

Economists polled by Reuters expect annual inflation will come in at 3.4% for January, down from 3.6%.

Investec economist Lara Hodes said inflation is projected to have lifted by a modest 0.2% in January, translating to 3.5% y/y.

Nedbank economists forecast consumer price inflation to remain unchanged at 3.6% in January citing upward pressure from food inflation, driven by elevated meat prices reflecting the continued impact of foot-and-mouth disease.

Then, for insight on private sector sentiment, the SA Chamber of Commerce and Industry will release its business confidence index.

SA’s benchmark 2035 government bond was also flat in early deals, with the yield at 7.195%

–Reuters–