The rand was weaker against the dollar at midday on Wednesday after the consumer price index (CPI), measuring consumer inflation for December, came in higher than expected. CPI increased 6.8% in December compared with a year earlier, from November’s 6.6%, and a consensus expectation of 6.5%. Higher consumer inflation was mainly driven by food and nonalcoholic beverages, rising an annual 11.7%, picking up slightly from 11.6% in November. The worse-than-expected consumer inflation number has raised the spectre of further interest-rate increases by the Reserve Bank. But FNB analyst John Loos expects the Bank to keep rates unchanged. "The Bank is forward looking and is foreseeing a significant slowing in food price inflation as a matter of time, based on at least a partial alleviation in drought conditions," Loos said. The dollar recovered against major currencies after being hammered on Tuesday ahead of president-elect Donald Trump’s inauguration on Friday. The dollar was nearly 1% str...
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