JOHANNESBURG, Feb 12 (Reuters) - South Africa's rand

slipped on Wednesday, after data showed U.S. consumer prices

rose more than expected last month, raising the prospect of the

Federal Reserve holding interest rates higher for longer.

At 1520 GMT, the rand traded at 18.55 against the U.S.

dollar, more than 0.2% lower than its previous close.

The dollar index was last up about 0.4% against a

basket of currencies.

The U.S. consumer price index jumped 0.5% in January after

gaining 0.4% in December, the Labor Department's Bureau of Labor

Statistics (BLS) said on Wednesday.

Like other risk-sensitive currencies, the rand often takes

cues from global drivers such as U.S. monetary policy in the

absence of major local drivers.

Fed Chair Jerome Powell told the U.S. Congress on Tuesday

that the central bank was not in a hurry to cut interest rates

and a reduction would be considered only if inflation eased or

the job market weakened.

On the stock market, the Top-40 index hit a fresh

high and closed up about 0.5%.

South Africa's benchmark 2030 government bond was

weaker, with the yield up 5.5 basis points at 9.205%.