Clothing prices rise for first time since 1992

The price of clothing and footwear in the UK has increased for the first time since 1992 as we seemingly approached the end of the era of cheap goods from the Far East. A number of factors appear to have come into play including an increase in raw material prices and import costs in the UK, due to currency fluctuations. So is this really the end of the era of cheap goods?

The Office for National Statistics revealed that the price of clothing and footwear in the UK increased by 0.9% in September compared to the same period 12 months ago. The very fact that prices increased by a single figure of 6.4% between August and September 2010 reflects the fact that many retailers have been forced to push through price increases because of the VAT changes planned for January and an increase in manufacturing costs.

Whether or not we are officially at the end of the era of cheap goods from the Far East remains to be seen but in the short term it seems that clothing and footwear prices will remain stubbornly high even though the UK, and the retail sector in particular, is set to enter a very challenging period.