The Reserve Bank of New Zealand (RBNZ) has released its Sector Factor Model Inflation Gauge for the second quarter of 2024, following the publication of the official Consumer Price Index (CPI) by NZ Stats early on Wednesday.
The inflation rate fell to 3.6% annually in the second quarter of 2024 from 4.2% in the first quarter.
Inflation measures are closely followed by the RBNZwhose monetary policy objective is to achieve inflation of 1% to 3%.
Implications on the foreign exchange market
He New Zealand Dollar maintains its advance above 0.6050 following the RBNZ inflation data. At the time of writing, NZD/USD is adding 0.36% on the day to trade at 0.6066.
About the RBNZ Sectoral Inflation Factors Model
The Reserve Bank of New Zealand has a suite of models that produce estimates of underlying inflation. The sectoral factor model estimates a measure of underlying inflation based on co-movements – the degree to which individual price series move together. It takes a sectoral approach, estimating underlying inflation based on two sets of prices: prices of tradable items, which are those imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
