U.S. retail shoe prices climbed at the fastest pace in more than three years in January, highlighting persistent cost pressures in the footwear market even as broader inflation trends show signs of cooling. Retail footwear prices rose around 2.0% year‑on‑year in January, according to data from the Footwear Distributors and Retailers of America (FDRA), outpacing the overall consumer price index and marking the sharpest increase since 2022.
The increase in shoe costs came as the Bureau of Labor Statistics reported that the Consumer Price Index rose 2.4% on an annual basis in January, below economists’ expectations and down from a 2.7% pace in December. That overall inflation figure — the lowest in several months — was driven in part by lower gasoline prices and a moderation in rental inflation.
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Industry analysts say rising import and supply chain costs have played a significant role in lifting footwear prices, with importers facing higher landed and duty‑paid costs that are increasingly passed through to consumers. All major footwear segments saw year‑on‑year price increases last month, with men’s shoes posting the largest gains.
Despite the stronger readings in specific categories like footwear, the cooling headline inflation has helped reinforce market expectations that the Federal Reserve could begin cutting interest rates later in 2026 if price pressures continue to ease. Stock futures responded to the broader CPI data with more moderate moves on Friday, while Treasury yields ticked slightly lower.
Economists caution, however, that while overall inflation has softened, persistent price increases in goods and services — including apparel and footwear — suggest some underlying pressures remain, potentially tempering an overly optimistic view of inflation’s trajectory this year.
