Covid Impact: Global shipping problems driving up price of every day items

They are items we use everyday but global shipping problems are driving up the price of furniture, televisions, cell phones and even the humble apple.

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The pandemic’s impact on New Zealanders’ wallets could last for some time. Source: 1 NEWS

Statistics New Zealand figures show inflation is stable at 1.4 per cent but the price of produce has risen along with staple household items.

So too the cost of your summer holiday - spending a few nights in a hotel or motel or privately rented bach was up 20 per cent in December.

An Auckland small business owner told 1 NEWS she was uncertain how prices would be impacted once stock finally arrived from overseas. 

“We have some stuff coming from China and Japan, so there's some delays, we don't receive at the moment, we hope to see soon, but I don't know if it will be the same price,” says Amandaaap Kaur of Supervalue Glen Innes.

Business confidence surveys out this week shows confidence is up on last year, but the big worry for many businesses are these supply chain disruptions, and if they continue, could see the economy start to shake through the first half of this year.

“Incomes aren't growing strongly so if prices do increase quite sharply then we could see some spending pull back so it could see or add a bit of a wobble to the economy,” says Kiwibank Senior Economist, Jeremy Couchman.

The Trade Minister says Kiwis are used to changes brought on by Covid-19.

“It may be one more impact on our economy, most New Zealanders are used to changes occurring on a regular basis,” says Damien O’Connor.

Exporters are working together to minimise the impact.

“They are looking at logistical options, different routes to markets, some are actually putting product in market, in their own warehouse to be able to supply to these retailers or customers when is required,” says Chris Boys of Katabolt Export Consultants.

“Consumers are at home, we know statistically that consumers are buying, it's how you get to those consumers in a different way,” he says.