The sectoral factor model is the Reserve Bank of New Zealand’s own preferred inflation measure, it dropped back significantly in the September quarter:
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.
Earlier today we had the official CPI data from NZ: