By Tannur Anders

JOHANNESBURG (Reuters)

South Africa's inflation rate rose less than expected in November, staying just below the central bank's target range, thanks to food inflation slowing to its lowest level in almost 14 years.

Headline consumer inflation was 2.9% year on year in November, up from 2.8% in October. Month-on-month, inflation was 0.0% in November, in contrast to -0.1% in October, according to Statistics South Africa data.

Economists polled by Reuters had forecast headline inflation would accelerate to 3.1% annually. The South African Reserve Bank aims for inflation between 3% and 6%, targeting the midpoint of that range.

Jason Tuvey, deputy chief emerging markets economist at Capital Economics, stated, "We expect inflation will continue to edge higher over the coming months. But it is likely to remain contained and stay below the 4.5% target midpoint."

The central bank recently cut its main lending rate by 25 basis points (bps) for the second consecutive meeting, following inflation falling below the target range in October for the first time in years. Tuvey suggested a 50-bps cut could be considered at the central bank's next policy meeting in January.

Food and non-alcoholic beverages inflation slowed to 2.3% year on year in November from 3.6% the previous month, marking the lowest rate of price increases for that category since December 2010, according to the statistics agency.

However, a month-on-month increase in fuel prices contributed to the rise in November's headline inflation figure.

Annual core inflation, excluding food and fuel prices, was also below expectations at 3.7% in November, down from 3.9% a month earlier.