By  on March 17, 2011

Consumers coping with higher fuel and food prices were in no mood to deal with higher apparel prices in February.

Economists and analysts said retailers may have tested the waters with apparel price hikes in January to offset soaring raw materials prices, but met resistance from consumers and pulled back, as evidenced by an unexpected drop in apparel prices in February, according to a closely watched government index released Thursday. This preliminary sign of shoppers’ refusal to accept higher prices currently working their way through the supply chain only adds to the already high pressures on gross margins confronting retailers and wholesalers.

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