New Zealand’s sectoral factor inflation model holds steady, matching the central bank’s 1-3% target range for the second straight quarter.
New Zealand’s Reserve Bank reported its sectoral factor inflation model at 2.7% year-over-year in Q2 2026, unchanged from Q1. The gauge aligns with the RBNZ’s 1-3% inflation target, following Tuesday’s official CPI release by NZ Stats.
The model tracks core inflation by analyzing tradable and non-tradable price movements, offering a sectoral view of price pressures. Tradable items include imported goods or those exposed to international competition, while non-tradable items reflect domestically produced goods.
The NZD faced modest selling pressure after the data, with NZD/USD retreating from a seven-week high of 0.5874 to 0.5858, though still up 0.36% on the day.