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.

Consumer prices rose 3% from a year earlier, compared with 2.9% in the prior month, Pretoria-based Statistics South Africa said

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.

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

South Africa's headline consumer inflation rose to 3.0% year on year in December from 2.9% in November , data from the statistics agency showed on Wednesday.