Apparel Prices Edge Down in October, Footwear Prices Suffer Biggest Drop Since 2007
Consumer prices rose by an expected rate in October compared to a year ago, the result of a retreat in energy prices that had spiked at the end of hurricane season, plus flat food prices. Apparel prices dropped slightly year-over-year.
According to the most recent Consumer Price Index (CPI) data released by the U.S. Department of Commerce, prices for all goods and services rose by 2 percent adjusted for seasonality compared to the same month last year, their second biggest gain since January. The core inflation rate, which excludes food and energy, increased by an expected 1.8%, below the Fed’s target of 2 percent.
The apparel and footwear price index fell by 0.6%.
Apparel prices excluding footwear were down 0.2% compared to October 2016, capping six consecutive months of flat or lower performance. Footwear prices fell by 2.1%, their biggest year-over-year drop in over a decade.
Womenswear prices dipped by 0.5% in the month, while menswear prices fell by 0.3%.
The footwear price index was pressured by a big drop in children’s show prices.