Rising Inflation ‘Not A Big Concern’ For These Sectors – By Lauren Dubois (IB Times) / July 17 2021
Rising inflation costs have worried some, especially as it has affected consumer confidence. Still, while rising prices in nearly all sectors may be causing some concern, those in the apparel industry aren’t as worried about how it may affect them.
While prices have increased throughout different sectors of the economy with the Labor Department revealing in the June consumer price index that prices jumped 0.9% overall from May, the apparel industry is welcoming an increase in prices, after the industry remained stagnant for a decade.
“This is not a big concern for apparel retailers,” Terry Lundgren, the former executive chairman and chief executive of Macy’s, said on Power Lunch. “You’re talking about a few dollars going up in price. It’s not going to change the consumer’s mind in terms of purchasing.”
Apparel inflation hadn’t been a factor for 10 years, and, according to CNBC, prices rose 0.7% in June, coming off a 1.2% increase the month prior. Compared with a year ago, at the height of the coronavirus pandemic, prices were up 4.9%, something Lundgren referred to as “modest.” By comparison, vehicles jumped 10.5% in price, food increased 0.8% and energy has increased 1.5%.
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