Shoe Prices Continue to Climb in August, More Increases Expected as Tariffs Impact Footwear Imports

Core Insights - Footwear prices increased by 1.4 percent in August, marking the highest rise in 17 months and the second fastest in 33 months, reflecting overall inflation trends [1] - Women's footwear prices rose by 2.8 percent, the largest increase in 34 months, while children's shoe prices increased by 0.9 percent, the fastest this year; in contrast, men's footwear prices decreased by 0.2 percent but have risen in 14 of the last 19 months [2] Industry Drivers - Rising footwear prices are attributed to inflation and "onerous" tariffs impacting the market significantly, as over 98 percent of footwear sold at retail is sourced from abroad [3][4] - Duties on footwear imports surged by 108.7 percent year-over-year, reaching $635.8 million, indicating a strong correlation between duties paid and retail footwear prices [4] Economic Context - The Bureau of Labor Statistics reported a 0.4 percent increase in the Consumer Price Index (CPI) for August, with a year-over-year increase of 2.9 percent, indicating a broader inflationary trend [6] - August marked the fourth consecutive month of accelerating inflation, with the core CPI rising by 0.3 percent [7]