We’re being warned our clothes shopping habit is about to get even more expensive – and not because of your preference to sip on a latte while browsing the racks.
A combination of increasing cotton and wool prices and the Australian dollar decreasing in value is expected to hit shoppers where it hurts.
While there’s no word as to when the prices will go up, according to Citi most retailers will need to raise prices to maintain profit margins.
Senior Analyst Craig Woolford said he expected to see the change reflected in price tags real soon.
“We expect higher inflation in the next 12 months given prices are rising for underlying commodities such as cotton and wool and clothing retailers look to offset the decline in the Australian dollar to maintain margins,” he told Fairfax.
Recently the price of clothing has been decreasing with the increase in foreign competition from the likes of H&M, Zara and Uniqlo being responsible for the cheaper tags.
If you ever needed an excuse to go shopping, well this might be it!
Go forth and spend our shopaholic friends…