Raw materials are another critical area where prices have gone through the sunroof. Between August 2009 and March 2010 alone, the price of cotton rose well over 400%, so you can appreciate the pain that was being felt by Levis, AA and XXXL tee shirt makers. The hefty increase in cotton was the result of a worldwide shortage, brought on by diminished crops, natural disasters and general business stuff that is too yawn-inducing to list here. However, since this article was written, prices have stabilised somewhat. Check the price graph compiled by Index Mundi.
As if that’s not bad enough, the price of silk, polyester, wool and leather has also busted a nut. Rubber prices have also exploded, reportedly due to the sheer volume of Goodyears required to service millions of new cars in China. Latex alone has increased 75% over the past year, which must be making Lady Ga Ga terribly, terribly nervous.
Any wonder your shoes just went up 10%?
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