JOHANNESBURG: The South African rand was steady in early trade on Wednesday, ahead of the release of inflation data ​which is expected to reflect pressures from the war ‌in the Middle East.

At 0619 GMT the rand traded at 16.68 against the dollar , a whisker away from its previous close.

 Statistics South Africa will ​publish April inflation data (ZACPIY=ECI), opens new tab at around 0800 GMT, with ​analysts polled by Reuters expecting it to accelerate to ⁠3.9% year on year, up from 3.1% in March.

Nedbank ​economists estimate a higher reading of 4.4%, driven mainly by a ​sharp increase in transport costs due to rising fuel prices.

As a net fuel importer, South Africa is heavily exposed to the spike in global ​energy prices.

The statistics agency will also release retail sales (ZARET=ECI), opens new tab numbers ​at around 1100 GMT, although analysts say the March figures are unlikely to ‌show ⁠weakness as they predate the full escalation of the Iran war.

Retail sales rose 1.6% year on year in February, with analysts predicting a 2.5% increase in March.

 “Household spending at that time would ​have been supported ​by the ⁠favourable inflation backdrop, easier financial conditions and improving sentiment prior to the full effect of the ​onset of the Iran war,” Nedbank economists said.

The ​US dollar ⁠was flat against a basket of currencies as global traders continued to track developments in the Middle East and a visit ⁠by ​the Russian leader to China.

South Africa’s benchmark ​2035 government bond was slightly stronger in early deals, with the yield falling ​1.5 basis points to 8.915%