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Prices Continue to Inch Higher, Squeezing the Fashion Industry

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Prices Continue to Inch Higher, Squeezing the Fashion Industry

Much higher gas prices stoked inflation, but apparel prices were also on the rise in September.

Inflation continued to squeeze the already pressured consumer in September — with fashion broadly keeping pace with the overall economy.

Prices on all goods and services rose 3.7 percent from a year earlier, according to the Labor Department’s Consumer Price Index, updated on Wednesday.

Much of the overall boost came from fuel prices given the war in Iran, fallout from which pushed gasoline prices up 34.2 percent year-over-year.

Stripping away food and energy prices, which nonetheless are important to most households, the so-called core prices were still up 2.6 percent, slightly higher than the 2.5 percent forecast by economists, according to FactSet.

Fashion is running a little hotter than core prices, but not quite at the overall number.

September apparel and footwear prices were each up 3.4 percent from a year earlier. The apparel increase included a 7.8 percent jump in boys’ apparel and a 3.6 percent increase in girls’. Men’s increased 2.8 percent and women’s advanced 2.1 percent.

Fashion companies have been working hard to better hold prices, producing less in order to sell more at full price, accepting less growth for better margins.

But the battle against the temptation of price promotions is long and one that has had the industry continually losing ground.

4 percent for the 10-year stretch.



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