Since January 1, 2011, cotton prices have increased by 44%, driving clothing prices up 10% and causing some retailers to consider boosting prices on their cotton-heavy merchandise. Cotton prices have soared recently due to high foreign demand and as well as unfavorable weather conditions in cotton-producing locations around the world, where flooding has created a shortage in the cotton supply. Commodity experts say the reasons for the price jump are not uncommon.
Cotton is in most of the clothes we wear. Items that contain 100% cotton will definitely see a price increase. Avoiding inflation will be difficult if prices continue to stay high. Leaders around the world are worried about how cotton prices will affect the economy of their nation. Retailers say that it will take a few months for consumers to see an increase in clothing prices. Raised cotton prices have created a problem not only for the consumer, but the retailer as well.