RBNZ: Annualized Q4 Sectoral Factor Model Inflation accelerates by 5.8%
The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the fourth quarter of 2022 this Wednesday.
The gauge climbed further to 5.8% YoY in Q4 2022 vs. 5.6% seen in Q3.
In early Asia, New Zealand’s Consumer Price Index (CPI) rose by 1.4% QoQ in the fourth quarter, beating expectations of a 1.3% increase. Meanwhile, the annualized inflation steadied at 7.2% but bettered estimates of 7.1%.
FX Implications
The Kiwi dollar is unimpressed by the RBNZ inflation gauge, as NZD/USD is keeping its recovery mode intact toward 0.6500.
At the time of writing, the Kiwi is trading at 0.6489, down 0.20% 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 either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
