The Reserve Bank of New Zealand (RBNZ) said on Friday that its sectoral factor model of core inflation was 1.8% year-on-year in the fourth quarter.
The measure was 1.7% in the previous quarter.
The release came after the statistics agency released figures showing the consumer price index rose 0.5% in the same quarter, beating expectations.
Both measures are closely watched by the RBNZ, which has a monetary policy goal of achieving 1 to 3% inflation.
(Reporting by Praveen Menon; editing by Sam Holmes)
