Consumer prices had their biggest month-over-month increase in two years last month, according to data released Thursday by the U.S. Bureau of Labor Statistics. But apparel and footwear prices continued to slide, depressed by oversupply, the intensely promotional retail environment and the increasing influence of cheap and chic fast fashion retailers.
The overall consumer price index, or CPI, increased by 0.4% in May compared to April, due to higher gas prices, but remained below economist estimates. However, the index was flat on a year-over-year basis. The core inflation rate, which excludes food and energy, rose by 1.7%.
The combined apparel and footwear price index fell by 1.5%, the seventh straight month of decline, and the largest drop in five months. The index for apparel alone dropped by an even steeper 2.3%. Footwear prices increased by 1.8% in the month, less than April’s 2.7% year-over-year increase.
The drop in apparel prices was due primarily to a 3.2% drop in women’s prices. Retailers continue to cite women’s apparel as one of the weaker areas in the market.
Men’s apparel prices declined the least of any segment, down by just 0.5%.
Although the combined infants’ and childrens’ sectors saw prices drop by only 0.4%, both girls’ and boys’ apparel fell by more, and prices for infants and toddlers apparel firmed in the month.
At the upcoming edition of Sourcing at MAGIC, attendees will be able to witness the factory of the future right on the show floor.Read more
RIS is recognizing several retail software vendors for their ability to transform industry member’s businesses with technology.Read more
The wool market has battled dwindling demand from the infiltration of high-tech fabrics in the outerwear market for many years and lost supply in its home market of Australia, where growers have increasingly opted for more profitable use of their land.Read more
The U.S. Commerce Department issued affirmative final determinations in the countervailing duty investigations of fine denier polyester staple fiber from the China and India.Read more
The cost of enjoying free shipping on Amazon is going up.Read more
GFG named two new co-CEOs, Walmart International named Judith McKenna as its new CEO and a Louis Vuitton veteran announced his exit.Read more
Portugese mill Tintex is switching from the use of conventional cotton and has launched a new fabric range called Naturally Advanced Cotton by Tintex using four different premium and responsibly grown cottons.Read more