RBNZ Sectoral Factor Model Inflation for Q2 remains unchanged at 1.7% YoY

Having witnessed headline Consumer Price Index (CPI) data for New Zealand during the early Asian session, it’s time to know Reserve Bank of New Zealand’s (RBNZ) preferred version of inflation gauge.

Alike CPI (YoY), the Sectoral Factor Model Inflation from RBNZ also remains close to the lower end of the RBNZ’s target range of 1.00% to 3.00% while flashing 1.7% increase on a yearly basis.

It should also be noted that Tradeable Inflation in the Sectoral Factor Model remains up +0.7% y/y with Non-Tradeable inflation rising to +2.7%.

FX implications

NZD/USD remains on the bids and showed little reaction to the news that continues to highlight RBNZ’s bearish bias.