Win some, lose some with GST

Prices on some household items have risen more than double the cost of yesterday's GST increase - despite many retailers choosing to take a hit to their profit margins.

Some shoppers said the changes were noticeable at the checkout and would affect their budgets, while others could not see what the fuss was about.

A Weekend Herald survey yesterday found most shops kept their price rises at or below the cost of GST - with some notable exceptions.

Subway's Sub of the Day became 40c dearer even though the GST component rose less than 9c. Loose bananas at Foodtown rose 14c a kg where the extra GST cost was just 7c.

A Fisher & Paykel Iridium fridge freezer at Noel Leeming became $100 more expensive overnight despite a GST increase of $47.

But in all cases, the retailers absorbed the GST rises in other items.

Noel Leeming avoided rises to most products and the electronics store even dropped some prices.

Foodtown kept its price rises exactly at or slightly below the GST increase on most items.

Rebecca Kneale did a small shop at Foodtown Tauranga yesterday with her three children and said she could not notice any change at all.

"Supermarkets have specials anyway, and everything gets lost in the works," Ms Kneale said.

Jackie Rodley, with her 5-year-old daughter, Paige, said they did not notice anything at the checkout but the GST rise would affect their budgeting in the long-term.

"It will make a bit of a difference, definitely. Two and a half per cent isn't major, but in the long run we'll make some changes."

Anna Tee filled up her car and shopped at Foodtown and The Warehouse, including buying birthday presents for her partner.

"I've noticed it. Some things have gone up quite a bit. I should have bought the presents yesterday."

Pensioner Roger Garrett said the effect of GST had been overstated, but it would still squeeze his budget.

"I think it's a big beat-up. I mean, for us guys on fixed incomes it's going to have an effect - I have no doubt about that," Mr Garrett said.

"But the food bill has been going up and up and up anyway."

Tauranga pub the Crown and Badger has left its prices unchanged, a pint of Speights still going for $7.30.

Mitre 10 Mega's Tauranga store increased all its prices by exactly 2.2 per cent, except for paint, plants and outdoor furniture, which kept their original prices.

Many dairies held off increasing their prices yesterday, opting for now to cut into their profit margins.