Cost of clothing and footwear see highest inflation in almost 30 years

Inflation in the UK has risen to its highest level in 30 years, driven by a higher cost in clothing and footwear. Inflation in December 2021 soared to 5.4 percent.

On average, the cost of goods saw increases of 6.9 percent compared to an increase in by 3.1 percent. Clothing prices rose an average of 0.7 percent in December compared to last year.

Grant Fitzner, ONS chief economist, said in a statement: “The inflation rate rose again at the end of the year and has not been higher for almost 30 years.” “Food prices again grew strongly, while increases in furniture and clothing also pushed up annual inflation. These large rises were slightly offset by petrol prices, which despite being at record levels were stable this month, but rose this time last year. The closures in the economy last year have impacted some items but, overall, this effect on the headline rate of inflation is negligible.”

The rise in costs is deepening the UK’s cost of living crisis, commented the Guardian, putting “pressure on the Bank of England to raise interest rates.”

In the State of Fashion report by McKinsey and Business of Fashion, two-thirds of fashion executives said they are expecting to increase prices in 2022, with an average price increase of 3 percent across all clothing and apparel. A further 15 percent of executives polled stated they planned on increasing prices by more than 10 percent in 2022.