London
Reports in the press today predict that clothing prices are set to rise by 14% this autumn / fall. This in part due to flooding in Australia and wage inflation in China.
Prices for spring / summer ranges are up 8% compared to last year.
Some city analysts predict that prices may rise as high as 14% this autumn / fall.
Major retailers may switch to man made fibres or cheaper suppliers, not good news for those working in far east sweat shops.
Not everyone is pessimistic. Julian Dunkerton, head of the SuperDry fashion group is quoted as saying “I can’t see it being near that.”
Some experts believe that the Bank of England may raise interest rates in an attempt to slow prices.
Update
15:51 10/02/2011
The Bank of England has left interest rates unchanged at 0.5% base rate. However analysts remain pessimistic, Stephen Boyle, head of RBS group economics, said: “It is a question of when – not if – rates start to rise in 2011. My forecast is for a first hike in August, but we are at the point where every meeting will be a close call. One big number on growth or inflation could be decisive.”
Haus of Radford 