The Reserve Bank of New Zealand (RBNZ) released its Sector Factor Model inflation indicator for the fourth quarter of 2024, following the release of the official Consumer Price Index (CPI) by NZ Stats earlier on Wednesday.
The inflation measure extends its downward trend to 3.1% year-on-year (YoY) in the fourth quarter of 2024 compared to 3.4% in the third quarter.
Inflation measures are closely followed by the RBNZwhose monetary policy objective is to achieve inflation of 1% to 3%.
FX Implications
He NZD sees new wave of selling following RBNZ inflation data. At the time of writing, NZD/USD is down 0.44% on the day to hit intraday lows near 0.5650.
About the RBNZ Inflation Sector Factors Model
The Reserve Bank of New Zealand has a suite of models that produce estimates of core 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 adopts 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 face import competition.
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.
