South Africa's inflation rate rose for the second month in a row in December but by less than expected, with analysts saying the central bank was still likely to deliver another interest rate cut next week.

Inflation came in lower than expected for December, with another interest rate cut next week now seen as likely.

South Africa's rand was stable on Wednesday, after data showing domestic inflation rose less than expected last month and November retail sales jumped. At 1502 GMT, the rand traded at 18.50 against the U.

A policymaker at South Africa’s central bank downplayed the potential impact of the rand’s recent weakness on inflation, in remarks ahead of its rate-setting meeting later this month.

South African retail sales jumped in November as consumers benefited from last year's interest rate cuts, declining inflation and a pension reform that allowed fund members to make partial withdrawals before retirement.