Stat of the day: 8%

The percentage the rising price of cotton will add to the cost of clothes by next year

by Elizabeth Anderson
Last Updated: 09 Oct 2013
Could this be the end of Primark as we know it? Figures from fashion retailer Next suggests clothing prices will soar by at least 8% next year, with the prospect of a further rise if the ‘speculative bubble’ in cotton prices continues.

The price of cotton is now standing at a 15-year high after floods in China and Pakistan hit much of the crop and a bout of unseasonal weather in the US caused the price to rise by 90% in the past year.  

Put in perspective, the Daily Mail says this will add £1 to the price of a bra and £10 to a coat.  Other stores such as Debenhams and Primark have also said they’ll raise prices in light of the cotton shortage.

This is the latest blow to shoppers, who already face a VAT increase of 17.5% to 20% in January. On top of this the price of gas and train fares are expected to rise next year, while consumers have already faced a rise in food prices over the past year. Not much to look forward to next year then. Bring on 2011...

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Upcoming Events

Subscribe

Get your essential reading delivered. Subscribe to Management Today