Clothing prices will rise as much as 10 percent - WMC Action News 5 - Memphis, Tennessee

Clothing prices will rise as much as 10 percent

NEW YORK (CNN) - Clothing prices will rise by 9 or 10 percent as the fashion world grapples with soaring cotton prices, analysts said.

Global demand for cotton is at an all-time high, outstripping the supply.

One key factor for this crisis is adverse weather across Asia, which has ruined many cotton crops. Floods hit major producers in India and China, who alone provides one-third of the world's supply.

Retailers can try and cut costs by using different fabrics and cutting back on labor-intensive tailoring.

Some companies already raised prices in 2010, however, and more are planning to do so in the Spring.

Shoe store Nine West and women's clothing store Anne Klein both admitted that cost pressures mean higher prices for their merchandise.

Levi's, who increased its sticker prices in 2010, will likely raise prices for a second year in a row.

The brands poised to be hit the hardest, though, are those which rely on low prices to lure shoppers.

With the economy still struggling to recover, however, many retailers are wary of scaring away frugal consumers.

Copyright 2011 CNN. All rights reserved.

Powered by Frankly