WSET.com - ABC13Clothing Prices on the Rise, Cotton to Blame

Reporter: Dhomonique Ricks l Videographer: Brain Whitesell

Lynchburg, VA - Clothing prices are up and cotton is a major reason why. The Consumer Price Index shows for the month of May prices rose .2 percent.

That jump is actually pretty small compared to prior months. But for the year, the prices have risen more than 3.5 percent.

Jasmine retail store owner Henry Vaughan feels the price hikes.

"My cotton sweater manufacturer is a domestic manufacturer. And they've raised their prices about 10 percent," Henry Vaughan, Co-Owner, Jasmine said.

Although he has not noticed an increase from all cotton manufacturers, he says it is enough for him to shop around.

"We're buying a number of lines out of Canada now," Vaughan said.

For him, absorbing cost is not an option. He has to raise prices.

"We have to find things that will satisfy their needs but keeping in mind that price is always a factor," Vaughan said.

Most of Cotton Connection's profit is made from screen printing and selling cotton.

"We're noticing considerable increase in our cotton," HB Atkinson, Owner, Cotton Connection said.

It impacts the way HB Atkinson prices items.

"We're having to price jobs, job by job," Atkinson said.

He says it has impacted his business dramatically.

"That product has gone up considerably and therefore we have to change the price a little bit. It makes it hard," Atkinson said.

Lynchburg College Dean of Business and Economics Joe Turek has seen the numbers.

"In May while prices overall increased by .2 percent, clothing prices or apparel increased by 1.2 percent," Turek said.

The silver lining? Clothing is about 2.5 percent of a consumer's overall budget.

Flooding in China, Japan, and the Pacific Rim have all helped drive up the cost of cotton.

This impacts America because the number of American farmers growing cotton has declined sharply over the past decade; many companies get their cotton overseas.