South Africa's rand was stable on Wednesday, after data showing domestic inflation rose less than expected last month and November retail sales jumped. At 1502 GMT, the rand traded at 18.50 against the U.

StatsSA has reported that the average inflation rate for 2024 has dropped to 4.4%, the lowest level since 2020.

South Africa's headline consumer inflation rose less than expected in December, to 3.0% year on year from 2.9% in November, data from the statistics agency showed on Wednesday. In month-on-month terms inflation was at 0.

South African inflation quickened at a slower pace than expected in December, providing room for policymakers to cut interest rates later this month.Most Read from BloombergTexas HOA Charged With Disc

The biggest contributors to inflation in December were housing costs and miscellaneous goods and services, which ticked up 4.4% and 6.6% respectively. Inflation averaged 4.4% in 2024, slightly less than the 4.5% midpoint of the central bank’s target range, where it prefers to anchor expectations.

Statistics South Africa reported on Wednesday that inflation for 2024 overall came in substantially lower year-on-year at 4. 4% compared with the comparative print of 6% in 2023.

Inflation came in lower than expected for December, with another interest rate cut next week now seen as likely.

South Africa's inflation rate rose for the second month in a row in December but by less than expected, with analysts saying the central bank was still likely to deliver another interest rate cut next week.