RBNZ Sectoral Factor Model Inflation steadies at +1.8% YoY in Q2
The Reserve Bank of New Zealand (RBNZ) is out with its Sectoral Factor Model Inflation Index for the second quarter, with the figures coming in at 1.8% YoY vs. 1.8% previous.
This data comes after the official New Zealand (NZ) CPI met the consensus forecasts.
Actual NZ Q2 CPI: -0.5% QoQ vs. -0.5% expected (0.8% prior) and YoY at 1.5% vs. 1.5% expected (2.5% prior).
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.
FX implications
The Kiwi dollar is unfazed by the RBNZ inflation gauge, as NZD/USD trades close to the daily low of 0.6552, at the time of writing. The spot trades 0.17% lower on the day despite upbeat Australian jobs report and Chinese Q2 GDP data.
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.
