Fuel, clothes propel local prices higher

Consumer prices rose 1.9 percent in Houston during the first two months of the year, driven by spikes in gasoline and clothing costs, the U.S. Bureau of Labor Statistics reported Friday.The January-February Consumer Price Index increase is the largest since March and April 2011, when local prices shot up 2.2 percent, according to the bureau. The local bi-monthly data aren't adjusted for typical seasonal changes such as the introduction of next season's fashions, planting and harvesting schedules and price swings for hotel rooms and airfares.
Gasoline prices rose 12 per- cent during January and February, which bureau regional economist Cheryl Abbot attributed to concerns about the reliability of Middle Eastern oil supplies.She said sales and holiday promotions cause clothing prices to swing wildly. They also move up and down quickly as new clothes are introduced and older styles are discounted to make room.And Abbot noted that the Producer Price Index is not showing signs of price pressures on raw materials for clothing.Absent food and energy prices, typically the most volatile components of the index, local prices went up 1.6 percent during January and February.
Over the past 12 months local prices increased 3.6 percent, led by gasoline, clothing and food.'Fashion Star' contestants insist there is fashion in Seattle.While food prices weren't a big contributor to the jump in consumer prices in January and February, it's a different story over the past 12 months.Consumers paid 5.5 percent more at the grocery store in February compared with one year earlier.
That reflects an increase in raw material costs, as well as higher costs to get food to stores because of elevated fuel prices. Local drivers paid 14.8 percent more at the pump in February than they did one year ago and 15.2 percent more for their clothing.Consumer prices in the area are rising faster than those nationwide. In the U.S., consumer prices were up 2.9 percent during the past year."Houston has a hotter economy than the rest of the nation," said Patrick Jankowski, vice president of research for the Greater Houston Partnership. "In the greater scheme of things, when the economy is hot, you will see more pressure on prices." It's a matter of supply and demand, he said. With more money made and spent in the local economy, there is greater demand for goods and services. That nudges prices upward.