The Reserve Bank of New Zealand (RBNZ) released its Sectoral Factor Model Inflation gauge for the fourth quarter, having faced some technical glitch causing a small delay in its release time.
The gauge rose to 1.8% YoY in Q4 vs. 1.7% seen in Q3.
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.
The Kiwi dollar is picking up fresh bids on the uptick in the RBNZ inflation gauge, as NZD/USD prints a new four-day high at 0.6622, at the time of writing. The spot trades 0.11% higher on the day.
NZD/USD Technical levels to watch