Will clothes get cheaper in 2023? | Popgen Tech
This is what many people want to know.
- Inflation has driven up the cost of living in 2022, and this has spread to clothing.
- There is reason to believe that consumers will get some relief in the new year.
- As interest rates rise, consumer spending should slow and demand decline, which could lead to lower clothing prices.
There are certain costs that consumers face that are non-negotiable – meaning we have no choice but to pay off our credit cards if we have to to pay them off. Food, for example, is one thing, but gasoline is another (if you can’t leave your house and settle down, you can’t work or buy household necessities).
It’s easy to argue that clothes also fall into the “necessary expenses” category. Of course, some clothing purchases can be considered extra. But as your children grow, you need to buy clothes that fit them – there’s no getting around it. And if you need to have a professional wardrobe to keep your job, you may have to buy clothes from time to time because the things you have wear out.
Meanwhile, clothes have become more expensive this year due to general inflation. And you might be wondering how it will trend in the new year. The good news is that you can feel some relief when it comes to the cost of not only clothing, but consumer goods in general.
Prices may drop in 2023
There are various factors that have led to rampant inflation in 2022. First, shortages in the supply chain are still a problem, and whenever a product is in short supply, its price is likely to rise.
But there’s a good chance we won’t see such an abundance of demand relative to supply in 2023. The Federal Reserve is aggressively raising interest rates to slow consumer spending. So the cost of borrowing, whether it’s in the form of a car loan, mortgage or personal loan, is now higher – and may continue to rise.
This may encourage consumers to cut back on spending. And once we close the gap between supply and demand, the price of goods in general should start to come down. This also applies to clothing.
In fact, Morningstar projects that inflation will be worse in 2022 than it was in 2023, and suggests that consumers will get some relief next year. This is definitely a positive forecast.
How to save on clothes
Regardless of how clothing prices rise in the new year, there are a few steps you can take to keep your costs down. First, avoid expensive brands – especially when it comes to children’s clothes. Kids tend to outgrow clothes quickly, so it doesn’t make sense to invest in a $40 sweatshirt when you can get one for $15.
Also, buy clothes at the end of the season, not the beginning. Instead of stocking up on winter coats in October, for example, wait until April when retailers have excess stock they want to get rid of. That’s when you’re likely to find big discounts, and that’s when you can buy the next size up in anticipation that your kids will need a bigger size for next season.
And finally, don’t be too proud to accept the transfer. If you have friends in town with older children, ask them to donate gently used clothing items for your children. It’s an easy way to save on clothes, and you might be doing your friends a favor by helping them organize their closets.
There are reasons to believe that clothes will become cheaper in the new year. But in any case, do what you can to reduce your expenses so that you can free up money for other essential expenses.
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