This is the Reserve Bank of New Zealand measure of core inflation, Sectoral factor model

  • For June quarter (i.e. Q2) 2018

1.7% y/y

  • Highest in 7 years

This should be NZD supportive - I can't see why the RBNZ would be dovish with inflation edging up. Note though - this is not going to flick the switch to hawkish.

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
  • RBNZ says the gauge is one of their preferred measures.