South African rand eases after domestic PPI data

JOHANNESBURG, Nov 27 (Reuters) - The rand weakened slightly against the dollar on Thursday after data showed South Africa's producer price inflation accelerated in October, though moves in the currency market were muted due to the U.S. Thanksgiving holiday.

At 1440 GMT the rand traded at 17.17 against the dollar ZAR=D3, about 0.2% weaker than its previous close, with the U.S. currency =USD little changed against a basket of currencies.

South Africa's producer inflation was at 2.9% year on year in October, up from 2.3% in September, statistics agency data showed.

Producer inflation for meat and meat products rose further from 17.2% to 17.4% in October, driven by the lingering effects of foot and mouth disease.

Investec economist Lara Hodes noted that foot and mouth disease remained a key challenge despite ongoing vaccination, and continued to put pressure on farmers.

"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. Beyond the statistical factors, food and fuel prices will exert the most upward pressure," said Nedbank economists in a research note.

Investor attention will shift to credit ZACRED=ECI, trade ZATBAL=ECI and budget ZABUDM=ECI data on Friday.

On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last down 1.2%.

South Africa's benchmark 2035 government bond ZAR2035= was flat, with the yield at 8.58%.