Where Prices Are Rising Most and How Fashion Compares – WWD

 Where Prices Are Rising Most and How Fashion Compares – WWD

Inflation fell moderately in April – but price gains still continued at a 40 -year high and spread across the economy.

The Department of Labor’s April reading of the Consumer Price Index rose 8.2 percent from a year ago, up after March’s 8.6 percent rise, the highest since Ronald Regan was president.

While COVID-19-induced supply chain backups, and energy costs after Russia’s invasion of Ukraine were the factors behind higher prices, the effect was widespread. And even if consumers are seen as relatively strong and supported by unemployment of just 3.6 percent and higher nominal wages, tradeoffs need to be made.

Fuel prices rose 43.6 percent annually, while used cars and trucks rose 22.7 percent, food rose 9.4 percent and the cost of housing, amounting to about 32.5 percent of the total. cost, increased 5.1 percent.

That leaves little money for clothes, where prices rose 5.4 percent.

Higher prices have become a kind of badge of honor in the fashion industry’s historic promotion, with players heading to the high end of the market – from Ralph Lauren to Chanel – telegraphing their power of the brand with larger price tags.

Now costs are starting to go up.

Some, like Walmart, pride themselves on their power to fight inflation, using their scale and influence to deliver discounts to consumers, and that has clearly helped keep prices below the wider inflation rate of garments.

The Federal Reserve itself has started fighting inflation in the heat this year with two benchmark interest rate hikes that amount to a 0.75 percent increase. But another percentage point rate hike is expected this year and many fear the Fed will wait too long to cool an economy mixed with pandemics and overheating.

There are signs of a change in consumer spending online, but the process is just beginning and no one is sure how difficult it will be to travel down.

“As the cost of borrowing and economic uncertainty rise for consumers, we are beginning to see the early impact of online inflation and spending,” said Patrick Brown, vice president of marketing growth and stocks. look at Adobe. The web tracker found that online prices rose 2.9 percent from a year ago in April and decreased 0.5 percent compared to March.

Clothing prices rose 12.3 percent year-on-year and were down 1.7 percent compared to March.

Where Inflation Is Hardest

With price gains across the economy running 40 years high, fashion has found a lot of competition for the consumer dollar.

April Year-on-year price change Expenditure Share (CPI Relative Importance)
Fuel oil 80.5% 0.2%
gasoline 43.6% 4.6%
Airline fares 33.3% 0.5%
Used cars and trucks 22.7% 4.0%
Meats, poultry, fish and eggs 14.3% 1.9%
Men’s shirts and sweaters 9.6% 0.1%
fOOD 9.4% 13.4%
Women’s outerwear 8.6% 0.1%
Transportation services 8.5% 5.7%
All things 8.3% 100%
Women’s clothes 8.3% 0.1%
Men’s clothes 8.0% 0.5%
Pets and pet products 7.2% 0.6%
Men’s underwear, nightwear, swimwear and accessories 6.8% 0.2%
Women’s shoes 6.4% 0.3%
cobweb 5.4% 2.5%
Women’s clothes 5.3% 0.8%
shelter 5.1% 32.5%
Women’s clothes and separated 5.0% 0.4%
Women’s underwear, nightwear, swimwear and accessories 4.1% 0.3%
Jewelry and watches 0.3% 0.2%
Cosmetics, perfumes, bath, nail preparation and accessories -0.5% 0.3%
Televisions -5.8% 0.1%
Admission to sporting events -9.4% N/A
Smartphones -16.1% N/A
Source: US Bureau of Labor Statistics, N/A = not available

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