RBNZ Core Inflation Model rises by 2.2% QoQ in Q2 2021, Kiwi revisits highs
|The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the second quarter of 2021 after the publication of the official consumer price index (CPI) by the NZ Stats early Friday.
The gauge accelerated 2.2% QoQ in Q2 vs. 2.0% prior. The Q1 figure was revised up to 2.0% YoY from 1.9% last.
The inflation measures are closely watched by the RBNZ, which has a monetary policy goal of achieving 1% to 3% inflation.
FX Implications
The Kiwi dollar catches a fresh bid on the RBNZ’s inflation gauge, as NZD/USD bounces back to test the daily highs at 0.7022. The spot is higher by 0.50% on the day.
About the RBNZ Sectoral Factor Model Inflation
The Reserve Bank of New Zealand has a set of models that produce core inflation estimates. The sectoral factor model estimates a measure of core inflation based on co-movements - the extent to which individual price series move together. It takes a sectoral approach, estimating core inflation based on two sets of prices: prices of tradable items, which are those either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.