JOHANNESBURG - The South African 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.

At 0726 GMT, the rand traded at ​16.6250 against the dollar , up about 0.3% from its previous ​close.

Domestically-focused traders ​are waiting for February consumer inflation data due at 0800 GMT and January retail sales figures at 1100 ⁠GMT.

Economists polled by Reuters expect annual inflation will come in at 3.1% for February, down from 3.5% in January.

Nedbank economists also forecast CPI to decline to ​3.1% ‌in February, primarily due ⁠to a ⁠sharp drop in fuel prices.

"During the month, petrol prices fell by ​3.2% as the rand appreciated against the ‌U.S. dollar, while Brent crude ⁠oil prices remained steady. Together with a strong base effect, this resulted in a more than 10% yoy decline in fuel inflation," said the bank's economists in a research note.

According to the Reuters poll, retail sales are forecast to increase 2.5% in January, down from 2.6% in December.

Nedbank forecast retail sales growth of around ‌2.4% year-on-year in January.

 "Despite the moderation, underlying momentum remains positive ⁠and is consistent with the more ​favourable inflation backdrop and easier financial conditions, both of which are supporting household spending," said Nedbank.

South Africa's benchmark 2035 government ​bond was firmer ‌in early deals, with the yield down ⁠8.5 basis points to 8.71%.