The Reserve Bank of New Zealand (RBNZ) unveiled its Sectoral Factor Model Inflation gauge for the third quarter of 2023 .According to the report, the year-over-year (YoY) inflation rate in Q2 2023 fell dramatically to roughly 5%, a significant decline from the 5.7% number recorded in Q2.On Tuesday, New Zealand's official data, as reported by …
The Reserve Bank of New Zealand (RBNZ) unveiled its Sectoral Factor Model Inflation gauge for the third quarter of 2023 .
According to the report, the year-over-year (YoY) inflation rate in Q2 2023 fell dramatically to roughly 5%, a significant decline from the 5.7% number recorded in Q2.
On Tuesday, New Zealand’s official data, as reported by New Zealand Statistics (Stats NZ), showed that the Consumer Price Index (CPI) for Q3 increased by 5.6% year on year, which was lower than the expected 5.9% growth for that period. In the second quarter, the country’s CPI climbed by 6.0%.
Nevertheless, subsequent to the publication of the RBNZ inflation gauge, the New Zealand Dollar (Kiwi Dollar) is experiencing significant downward pressure in trading against the US Dollar, with the NZD/USD currency pair currently showing a decrease of approximately 0.4%.
To estimate core inflation, the Reserve Bank of New Zealand employs a number of models.
The sectoral factor model evaluates core inflation by analyzing co-movements, which show how individual price series move together. This model takes a sectoral approach to core inflation, distinguishing between tradable and non-tradable products.
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