How much will families spend on back-to-school clothes and supplies this year?
The CPI data for July will be released on Wednesday. How much more will families be spending on back to school this month?
Families around the country are getting ready for back to school with historic inflation present across the market. The Consumer Price Index (CPI) data for July are expected on Wednesday, 10 August.
Trading Economics estimates that prices will have moved up around one percent in July, coming after a 1.3 percent surge in June.
Clothing and school supplies
Prices for appeal across genders and ages are up 5.2 percent compared to last June. Those for boys (6.5 percent) and men (8.7 percent) were higher than the increases seen for girls (1.8 percent) and women’s clothing (3.5 percent).
However, the opposite has been seen in the footwear market, where women (6 percent) are paying higher prices than men (5.1 percent), but both have been outpaced by surges in the market for children’s shoes (6.7 percent).
School supplies and other materials have increased 3.7 percent, but further bumps in price could be coming when last month’s CPI data is released next week.
University costs are trending upward
Over the last year, the CPI for university tuition has tracked a 1.4 percent. In 2021 alone, prices increased 1.78 percent, and based on the cost increases seen this year, 1.16 percent, it is unlikely to lead to the same surge. Compared to the 2019 bump in the price of 1.51 percent, these numbers are not so different from than pre-pandemic level.
Materials needed for college and university have, however, increased above the averages typically seen. Textbooks have gone up on average five percent in the last year, higher than the 2.6 percent bump seen in the market for other books.
This comes as many across the country wait to see what the White House will forgive large amounts of debt. If they do not, student loan debt borrowers will have to begin repayment of their loans in September.
The White House has said that they will make a decision on the scale at which they will take on student det cancellation by the end of this month. Critically, President Biden ran on a platform that included $10,000 in student debt relief for all public borrowers. Since taking office he has separated himself from this position instead putting the onerous on Congress to pass a bill.
Many wonder what kicking back in student loan repayment will have on the economy. It is likely to decrease demand for goods as people have less to spend when paying their loans. However, this could create an additional economic shock that could send markets reeling as inflation and debt payments cut deeper into purchasing power, which could lead to a more intense recession.