JOHANNESBURG - The South African rand was little changed on Thursday as investors assessed ‍November producer inflation data ‍for clues on the health of Africa's largest economy.

At 1338 GMT, ​the rand traded at 16.7675 against the dollar , compared with its previous close of ⁠16.7750.

Producer inflation rose 2.9% year on year in November, unchanged from October, data from the ⁠statistics agency showed. ‌Producer prices were flat on a monthly basis.

Economists polled by Reuters had expected annual producer inflation to ease to 2.8%.

"The upturn in ⁠producer inflation will likely continue in the months ahead. The anticipated rise will mainly reflect base effects, with prices drifting higher off the low base established towards the end of 2024 and into 2025. Beyond the statistical factors, food ⁠and fuel prices will exert ​the most upward pressure," said Nedbank economists in a research note.

"Overall, producer inflation is forecast to increase moderately ‍from an average of 1.5% this year to 3.3% in 2026," said Nedbank.

Inflation has been contained this ​year, allowing the South African Reserve Bank to cut its main interest rate four times. At its last policy meeting, the central bank cut rates by 25 basis points, citing an improved inflation outlook.

Its next policy announcement is scheduled for January 29, and analysts expect further rate cuts in 2026.

"A strong ZAR, subdued global oil prices, and cheap imports from China have consistently eased domestic cost pressures. With these forces still in effect, inflation is expected to remain muted into 2026. This bolsters expectations ⁠for further SARB easing next year, with the first ‌of two more anticipated cuts likely arriving in Q1 or early Q2," said ETM Analytics in a research note.

On the Johannesburg Stock Exchange, the Top-40 index was ‌last down 0.02%.

South ⁠Africa's benchmark 2035 government bond was weaker, with the yield up 3 basis points ⁠to 8.405%.