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RBNZ Sectoral Factor Inflation Model arrives at 3.1% YoY in Q4 2024

The Reserve Bank of New Zealand (RBNZ) published its Sectoral Factor Model Inflation gauge for the fourth quarter of 2024, following the release of the official Consumer Price Index (CPI) by the NZ Stats early Wednesday.

The inflation measure extends its downtrend to 3.1% year-over-year (YoY) in Q4 2024 vs. 3.4% in Q3.

The inflation measures are closely watched by the RBNZ, which has a monetary policy goal of achieving 1% to 3% inflation.

more to come ...

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 those either imported or exposed to international competition, and prices of non-tradable items, which are those produced domestically and not facing competition from imports.

Japan’s Rengo agrees with BoJ that there is wage hike momentum in regions

With markets fully pricing in an interest rate hike by the Bank of Japan (BoJ) on Friday, the head of Rengo – Japan’s largest national trade union center said Wednesday that he agrees with the BoJ there is wage hike momentum in Japanese regions.
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Australian Dollar edges lower as Trump administration considers tariff on Chinese imports

The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Wednesday.
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