Earlier today we had the official CPI data from NZ:
- New Zealand Q3 CPI 0.6% q/q (expected 0.7%) & 2.2% y/y (expected 2.2%)
- RBNZ’s Silk says confident inflation will converge to 2% target midpoint in medium term
You can see the clear disparity between tradable and non-tradable inflation in the final four columns.
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The Bank on its own model:
- We created the sectoral factor model. It estimates the common component of inflation in the CPI basket, the tradable basket, and the non-tradable basket, based upon separate factors for the tradable and non-tradable sectors. The data excludes GST.
This article was written by Eamonn Sheridan at www.forexlive.com.
