Overall inflation fell slightly in March on a year-over-year basis for the third straight month, dragged down by declines in energy, apparel and other categories.
The combined apparel and footwear price index fell by 0.3%, its biggest drop in nine months, according to data released Friday by the Bureau of Labor Statistics. The index for apparel alone dropped by a steeper 1.4%, their fifth straight month of declines. The footwear price index increased by 2.8% in the month.
The drop in apparel prices was driven by a 2.6% decline in the women’s apparel price index. Most retailers are citing women’s apparel as one of the weaker areas in the market.
Men’s apparel prices enjoyed their biggest jump in the past year and a half, rising by 1.1% in March. Prices for boy’s apparel and girl’s apparel each dropped by 1.1%, while infants’ apparel prices were flat.
The low overall inflation rate was due primarily to a steep drop in energy prices compared to last year, which more than compensated for a slight rise in food prices. Excluding those categories, the consumer price index rose by 1.8%.
Other categories that saw significant year-over-year price decreases include consumer electronics and appliances. Shelter costs increased.
