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With the New Zealand dollar at its strongest in 22 years, consumers are in for some bargains on imported products.
The dollar hit a high last Thursday of almost US75cents, the highest it has been since it was floated in March 1985.
While some economists are predicting that the Reserve Bank may lift interest rates again, consumers can probably expect further reductions on items like televisions, computers, telecommunications equipment, and travel costs.
Importers Institute chief executive Daniel Silva said the strength of the dollar meant importers would pay less for goods, which meant a subsequent drop in prices for shoppers. Silva said the rise of the Kiwi dollar had already brought prices down on many imported goods.
"Electronics - flat-screen TVs for example - are a fraction of the price they used to be a year ago."
Sue Chetwin, chief executive of the Consumers Institute, said the high dollar was "fantastic for consumers". She also said those that shopped on the internet would reap financial benefits, but added some cautionary advice to people tempted to go out and empty their wallets over the coming months.
"It's only a bargain if you were actually already going to buy it. Just because it is less expensive doesn't mean it's affordable... and people need to... shop around."
Dick Smith Electronics merchandise manager James Cunnold said technology prices were constantly dropping, regardless of the dollar, but price changes may not be visible immediately, due to the company's buying cycles. However, he said, prices would come down due to the high dollar, and items such as TVs, computers, MP3 players and hard drives would continue to get cheaper.
Statistics NZ figures show that in the last three months alone, audio visual equipment prices have dropped 5 per cent.
