The Consumer Price Index—which has indicated elevated pricing on apparel goods earlier this summer—appears to be declining on a year-over-year basis, according to Department of Labor data released Aug. 11.
While topline CPI remained static at 5.4%, year-over-year CPI on apparel goods continued a downward trajectory in July to 4.2%, compared with 4.9% in June and 5.6% in May. The most significant movement in apparel goods was within footwear and women’s and girls’ apparel, both of which had year-over-year CPI declines to 4.6% compared with 5.3% and 6.5%, respectively in June.
Source: BLS Bloomberg, RSM US
While retail sales dipped lower than expected in July and the CPI year-over-year changes are still above the Federal Reserve’s target 2% benchmark, certain tail winds, including lower pricing combined with additional discretionary cash available to families through the expanded Child Tax Credit, could help drive consumer spending through the remainder of the summer.