Lower Australian dollar means clothing price rise “inevitable”, suppliers say

Clothing prices are expected to rise across the board for the first time in five years as suppliers and retailers raise prices after a 17 percent slump in the Australian dollar.

Suppliers have warned retailers that prices for fashion clothing, underwear and basic apparel will rise significantly in the second half of calendar 2015, as currency hedges roll off and new-season stock comes into stores.

The Australian dollar has fallen 17 percent against the US dollar since June and 10 percent over the past 12 months, pushing up the cost of clothing sourced from China, Bangladesh, Sri Lanka, Thailand and Vietnam.