Budget experts are cautioning shoppers against spending up large this month just to beat the GST price rise.
Tauranga Budget Advisory Service manager Marjorie Iliffe said the increased cost of goods and services meant people should think more carefully about spending their money.
Blowing the budget to beat the price rise defeated
the purpose, she said.
"All the ads are saying 'buy now before GST', but if people are taking on debt, that's going to cost them well into the future.
"It may sound like good long-term planning to buy now, but if you can't afford it, it's not."
Mrs Iliffe said price rises were a "fact of life", and some people were "overreacting" to GST rises.
Consumers wanting to get the best deal would be better off waiting for a sale, which would likely offer a far greater discount than 2.5 per cent.
Consumer adviser Maggie Edwards said some retailers would choose to absorb the GST rises anyway, negating the need to buy before October 1. "Don't rush into buying something unless it's a really good deal. There are a lot of retail sales throughout the year anyway."
Jackie Gower, of the Simple Savings website, agreed it was better to hang out for a decent sale than buy now just to beat the GST rise.
Some retailers were taking advantage of the change with marketing designed to entice shoppers to spend now, she said.
"If you are smart with your money anyway, it shouldn't really change anything.
"It's just common sense and shopping around for the best price, and waiting for the things you want or need."
