Prices may not follow euro fall

JENNY KEOWN
Last updated 05:00 17/01/2012
TDN Q3
supplied
CURRENCY EFFECT: Some European cars had attractive pricing and specifications as a result of the strength of the dollar.

Relevant offers

Money

Peering into the future of mobile banking Migration boom may stoke housing market Financial advisers to get ethics training Economist: Raise retirement age soon Sole trader privacy concerns linger Govt digital services use surges Sony exec joins Dotcom's music service Accused fraudster on the run KiwiSavers 'better off with capital guarantees' Rates tipped to pause after rise

Don't rush out to buy fancy European goods just yet. The strength of the New Zealand dollar against the weak euro is making life easier for importers, but that's not necessarily being directly translated into massive price reductions for European products.

Delmaine Fine Foods operations director Paul Wilford said products had become cheaper to import, but this was offset by substantially higher fuel and energy prices.

Also, products from struggling countries such as Turkey and Greece, and to some extent Spain and Italy, had substantially increased in price, and these price rises were only just being offset by the strong New Zealand dollar.

James McCloy, of European farming supplies firm EuroAgri, said the price of their products had remained static over the past four years, but the dollar hadn't driven that trend.

"It's the economic situation for us as far as farming goes, which is in a healthy way and all sectors are spending. There have been factory increases in price, but the high dollar has meant we can hold those prices."

Auckland-based European Motor Distributors imports new Volkswagen and Audi cars. Group general manager Glyn Tullock said fluctuations in the New Zealand dollar were relatively short-term.

However, some of the European cars being released on to the market had attractive pricing and specifications as a result of the strength of the dollar.

"The Volkswagen Golf Cabriolet has been released at $43,000, and this car would have been considerably more expensive if released six months or a year ago." But prices for used cars tended to remain stable.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content