KEY POINTS:
Consumers are in for some bargains as the New Zealand dollar soars to dizzying new heights.
Though crippling many exporters, the high dollar is bringing consumers a bonanza of cheaper imported goods.
The New Zealand dollar is continuing its rise towards US80c - a record since it was
floated 22 years ago.
Big-ticket items such as major household appliances, furniture and cars could come down in price from around September if the dollar stays high, said ANZ National Bank chief economist Cameron Bagrie.
"The higher the New Zealand dollar goes, the cheaper imported goods get. While export sectors don't like a high dollar, consumers do because it gives you more purchasing power," he said.
"I think firms are being a little bit coy about passing on those price increases. They are just not quite sure whether the New Zealand dollar is going to stay up here for too long ... You don't want to put prices down then have to rocket them right back up."
The full impact of the New Zealand dollar was not always passed on.
"We don't end up reaping the full benefit when the currency is high and we don't get stung with the full cost when the currency is really low. So there's just a little bit of ironing out that goes on."
Noel Leeming merchandise general manager Jason Bell said the impact of the high dollar was already evident, and now was a good time to shop.
"We are certainly seeing some of the lowest prices we have ever seen on some categories."
Items such as flat-screen TVs, digital cameras, computers and mobile phones have been gradually dropping in price over recent months.
"For example, over the last four weeks, a Compaq laptop has gone from $1199 to $937, a Mitsubishi fridge from $899 to $629, and a Canon digital camera from $499 to $392. A Panasonic 37-inch plasma TV, which is still $2799, now comes with a free DVD player worth $700."
He said technology prices were dropping anyway, but with the added impact of the high dollar, prices were "spectacular".
Mr Bell said the appliances market was so competitive in New Zealand that any advantages from the exchange rate were passed straight on to the consumer.
He said it was difficult to predict what prices would do, but once they were low it was hard to put them up again.
Consumers Institute CEO Sue Chetwin said the high dollar should be good news for consumers of imported goods.
But the drop in prices had been too slow, she said, given the dollar had been high for some time.
"I accept there is a lag. Prices are starting to drop. We have noticed it in the audio area as well as some washing machines.
"Customers should be able to drive some pretty sharp deals."
She said consumers could expect to see some reasonable drops soon.
She said it was a good time to shop online on reputable sites.
Motor Trade Association communications manager Andy Cumings said a high New Zealand dollar didn't necessarily mean formal car prices would come down. However, customers might be able to negotiate their price a bit more.
Dollar deals
* Compaq laptop: Down from $1199 to $937.
* Mitsubishi fridge: Down from $899 to $629.
* Canon digital camera: Down from $499 to $392.
* Panasonic 37-inch plasma TV: Still $2799 - but with a free DVD player.
