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.
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.