Surprise South African Inflation Dip Boosts Rate Cut Hopes

South African annual inflation unexpectedly softened in November, edging closer to the central bank’s new 3% target and boosting hopes for an interest-rate cut next month. Bonds rallied.

Consumer prices rose 3.5%, compared with 3.6% a month earlier, Pretoria-based Statistics South Africa said in a statement on its website on Wednesday. Only four of 11 economists in a Bloomberg survey expected a slowdown. Prices fell 0.1% in the month, against forecasts for no change.