The US Bureau of Labor Statistics on Thursday reported that apparel prices rose 0.5 percent in August, the highest level since it rose 0.6 in February. Overall inflation jumped 2.9 percent in August, against the 2.7 percent uptick in July.
The bump for apparel prices comes as pressures from the Trump administration’s tariffs take shape. The impact of tariffs, which were announced in April, were delayed as brands stocked up on goods earlier in the year. Apparel prices fell 0.4 percent in May before rising 0.4 percent in June and then 0.1 percent in July.
But in August, a universal 10 percent tariff on all of Europe was replaced by a 15 percent ceiling on tariffs in the region. The Trump administration also continued imposing punishing policies, including a 50 percent tariff on India in August. As a result, more brands are passing the extra cost of shipping onto customers through price increases — including E.l.f. Cosmetics, Nike, Shein and Temu. That strain may be short-lived, though. The US Supreme Court is currently deciding whether Trump’s tariffs were legally imposed.
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Surprise! Why Apparel Prices Are Actually Falling
The latest US inflation data, covering the weeks after the Trump administration’s tariffs kicked in, shows prices for clothing declined at their fastest pace in years. Consumers shouldn’t get complacent though — many experts say sticker shock is still coming.