RBNZ Q1 Sectoral Factor Model Inflation jumps by 4.2% YoY, Kiwi unfazed below 0.6800
The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the first quarter of 2022.
The gauge rose to 4.2% YoY in Q1 2022 vs. 3.8% seen in Q4 2021.
Earlier on, New Zealand’s Consumer Price Index (CPI) rose 1.8% QoQ in the first quarter but fell short of market expectations of a 2% increase.
FX Implications
The Kiwi dollar is little moved on the RBNZ inflation gauge, as NZD/USD is in a downside consolidation phase after taking a big hit on the below forecast Q1 CPI release.
At the time of writing, the kiwi is trading at 0.6780, down 0.33% 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.
NZD/USD Technical levels to watch
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.
