How to get ahead as inflation continues to soar

April 20, 2022

The official inflation figure is expected to rise when it is released later this week.

Filling the tank - or your belly - is a whole lot more expensive than it was 12 months ago, and inflation could rise this week to a 30-year high.

So what can you do now to get ahead?

Top independent economist Shamubeel Eaqub told Seven Sharp all Kiwis are feeling the pinch.

"Going to the supermarket, going to fill up our car, in terms of rents, so it’s fairly widespread," he said.

Meanwhile, the Reserve Bank announced it would be raising the Official Cash Rate (OCR), meaning mortgage rates would also be going up.

“For recent borrowers in particular, this is a really big risk because mortgage rates were just so low recently that a big increase now could really put people over the edge," he said.

File picture.

Eaqub said mortgage holders can ready themselves by "cut[ting] out all the fun things in your life, unfortunately – all the luxuries and those kinds of things".

He also stressed the importance of speaking to your bank and "tell them early on if there’s a problem".

"If you think you’re going to be running into trouble, go and talk to them because they can do things like move you on to interest-only, extend your terms – so there are things to do if you’re feeling that you’re right on edge."

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