You’ve bought a nice new printer, electric kettle or smart phone and the super helpful salesperson asks if you’d like an extended warranty or product protection. They politely suggest it’ll only cost a small amount and you can feel safe and sound, knowing your shiny new appliance is covered for an extra couple of years.

STOP.

Extended warranties are frequently offered on items that are for your personal use only and they are similar to the add-on loan insurances often offered by businesses such as car dealers.

For the past decade New Zealand has had relatively low inflation, with previous peaks occurring after the 2008 global financial crisis, the 2011 GST changes and Christchurch earthquakes.

Therefore, it’s not surprising the Covid pandemic is another major economic event that is creating an increase in inflation in New Zealand.