> RBNZ's own inflation model comes in at 1.4% y/y (lower than the official CPI)

RBNZ's own inflation model comes in at 1.4% y/y (lower than the official CPI)

Tuesday, 17/10/2017 | 02:06 GMT-0

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

New Zealand Q3 CPI 0.5% q/q (expected 0.4%)

(y/y was 1.9%)

The Reserve Bank of New Zealand 'Sectoral factor model' of inflation has come in at 1.4% y/y. 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 here is one of their preferred measures.

So while the headline was up, core remains well subdued.