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.
How Amazon may strip Whole Foods of its touchy-feely ethos—and why that's a good thing—had how cold brew proves you can teach old dogs new tricks.Read more
Loftex Home and GHCL sign CertainT licences, Hollander Sleep Products Buys Pacific Coast Feather and Oeko-Tex certifies Tuft & Needle.Read more
The National Retail Federation continues to lobby Congress with regards to the border adjustment tax, reiterating its claim that it would shift corporate tax savings to consumers.Read more
NRF announced new board members this week, while Topshop hired a new CEO and Macy's stepped up its off-price game with a new executive.Read more
Fashion can’t escape what’s happening in the world whether it wants to or not, and for the Autumn/Winter 2018-19 season, textiles will look to balance all that’s been upended.Read more
The Chittagong Port Authority has taken steps to alleviate the congestion situation at Bangladesh’s top port, but no comprehensive plan is in the works to fix what has been a long-term logistical problem.Read more
Looking to boost cotton quality and exports, Egypt’s Ministry of Trade and Industry has signed a cooperation protocol with United Nations Industrial Development Organization (UNIDO) and the Italian Development Cooperation.Read more