NZD - RBNZ's own inflation model comes in at 1.4% y/y (unchanged from Q3)

Earlier today we got the official Q4 New Zealand inflation data from the stats agency:

• NZ Q4 CPI: 0.1% q/q (expected 0.4%)

And, follow up posts:

• NZD after the inflation data ... No soup for you!
• Ladies and gentlemen trading the NZD ... MOAR inflation data to come today!
• Response from ANZ to the NZ CPI miss - RBNZ on hold until the middle of 2019
• We just had the NZ Q4 CPI data, Australia's is due next week - what are the implications?

From the Reserve Bank of New Zealand now ... 'Sectoral factor model' of inflation

The headline data was very weak, but this model comes in unchanged - which likely makes the implications of the lower headline less of an issue for the RBNZ. They are still on hold for a good while though.

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• The sectoral core factor model of inflation is one of many series that the Reserve Bank uses to help interpret inflation developments.
• The Bank uses these as measures of 'core' inflation, the bank says the gauge is one of their preferred measures.