Monday, February 14, 2011

Clothing Prices to Rise 10% Starting in Spring


Well here it is folks, the mainstream media has finally decided to drop the bomb on the American public.

As I have been pointing out when I post my weekly one year relative performance chart of the futures market, this price increase was coming. Due to the rapid price increase of cotton over the last year there was nowhere for clothing costs to go but up. The same hold true with every product manufactured with the use of cotton. Be prepared to start seeing more headlines such as these and more frequently and we head into the spring monthes.

from CNBC

Clothing Prices to Rise 10% Starting in Spring

The era of falling clothing prices is ending. Clothing prices have dropped for a decade as tame inflation and cheap overseas labor helped hold down costs.

Retailers and clothing makers cut frills and experimented with fabric blends to cut prices during the recession. But as the world economy recovers and demand for goods rises, a surge in labor and raw materials costs is squeezing retailers and manufacturers who have run out of ways to pare costs.
Cotton has more than doubled in price over the past year, hitting all-time highs. The price of other synthetic fabrics has jumped roughly 50 percent as demand for alternatives and blends has risen.
Clothing prices are expected to rise about 10 percent in coming months, with the biggest increases coming in the second half of the year, said Burt Flickinger III president of Strategic Resource Group.

Read the full article here