RBNZ: Annualized Q1 Sectoral Factor Model Inflation softens to 5.7%
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The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the first quarter of 2023 this Thursday.
The gauge eased slightly to 5.7% YoY in Q1 202, compared with the 5.8% clip booked in Q4 2022.
The New Zealand Statistics (NZ Stats) released figures that showed the Consumer Price Index at 6.7%, lower than economists and the central bank had forecast.
Both measures are closely watched by the RBNZ.
The Kiwi dollar is hit further by the RBNZ inflation gauge. NZD/USD is falling hard to test the 0.6150 level, as of writing, losing 0.73% on the day.
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.
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