Holly Pickett/Holly Pickett
A customer walks past a Guess store window display.
A customer walks past a Guess store window display. Holly Pickett/Holly Pickett
For the past few years, consumers have grown accustomed to deflation. In the past decade, the price of clothes has dropped. Well, quoting analysts and industry executives, the AP reports that this spring clothing manufacturers will hike up prices by as much as 10 percent.
The AP reports:
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.
According to the story, raw materials account for 25 percent to 50 percent of the cost of producing clothes. Cotton is selling for record prices because weather has cut harvests in China, the U.S., Pakistan and Australia.
Also, during the recession, decreased demand shut down plants and they haven't reopened.