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.