According to the Global Retail Manufacturers and Importers Survey by Capital Business Credit of retail goods manufacturers and importers, consumer goods at retail are likely to rise by 10–15% later this spring and into the summer, particularly in the apparel and home furnishings segments.

The increases are due to spikes in commodities and logistics costs. Among those surveyed, 94.4% believe that the increased cost of cotton will affect the cost of high cotton content products such as sheets, t-shirts and socks this spring and summer with almost half (44.4%) expecting prices of high cotton content products to increase by 10% or more.

Additional key findings in the survey include: more than half (62%) of respondents said their logistics costs have increased by more than 5% in the past year. Of those who identified an increase in logistics costs, almost two-thirds (64.1%) are passing at least some portion of the increased cost along to the retailer and consumer, causing retail prices to escalate even more. For manufacturers and importers the rise in oil prices (89.6%) and the conflicts in Egypt and Libya (62.5%) are the driving forces behind this increase.

The survey polled over 70 manufacturers and importers and was conducted throughout the week of March 14, 2011.

“Speculation of inflation has haunted the global economy since the recovery began. This fear has been due in part, to the rising cost of raw materials. We now have concrete proof that the cost of raw materials correlates to higher consumer prices. At CBC, we believe this is a sustained change that will continue into the fall season and beyond,” said Andrew Tananbaum, executive chairman of Capital Business Credit.