JOHANNESBURG- The South African rand gained on Wednesday, as December inflation came in quicker than expected, bolstering the case for the central bank to raise interest rates next week.
Statistics South Africa data showed annual consumer inflation accelerated to 5.9% last month ZACPIY=ECI from 5.5% in November, approaching the top of the South African Reserve Bank's (SARB's) 3%-6% target range.
Another release by the statistics service showed November retail sales grew 3.3% year on year, also more than forecast.
Those readings helped the rand trade 1.1% stronger on the day by 1130 GMT at 15.3500 to the dollar.
Also supporting the rand, the dollar slipped about 0.2% against a basket of currencies.
A Reuters poll predicted the SARB would raise its repo rate by another 25 basis points to 4.00% at its first monetary policy meeting of 2022. The decision from that meeting is due on Jan. 27.
The government's benchmark 2030 bond was slightly stronger, with the yield falling 1.5 basis points to 9.445%. The Top 40 index .JTOPI on the Johannesburg Stock Exchange was up 1.1%.
(Reporting by Alexander Winning; editing by Barbara Lewis) ((alexander.winning@tr.com; +27 10 346 1076))
