Will Clothing Get Cheaper in 2023?

It's something a lot of people want to know.

There are certain expenses consumers face that are non-negotiable -- meaning, we have no choice but to whip our credit cards if need be to pay for them. Food is one, for example, and gas is another (if you can't leave the house and get places, you can't work or purchase essentials for your household).

It's easy to argue that clothing falls into the category of "essential expense," too. Granted, some clothing purchases can be considered extras. But as your kids grow, you need to purchase clothing that fits them -- there's no getting around that. And if you need to maintain a professional wardrobe to keep your job, you may have to purchase clothing on occasion as the items you own succumb to wear and tear. 

Meanwhile, clothing has been expensive this year due to general inflation. And you may be wondering how it will trend in the new year. The good news is that you may be in for some relief when it comes to the cost of not just apparel, but consumer goods in general.

Prices could come down in 2023

There are different factors that led to rampant inflation in 2022. For one thing, supply chain shortages continue to be an issue, and any time there's not enough supply of a product to go around, its price is likely to climb. 

But there's a good chance we won't see such an abundance of demand relative to supply in 2023. The Federal Reserve has been aggressively raising interest rates to slow consumer spending. As such, the cost of borrowing, whether in the form of an auto loan, mortgage, or personal loan, is now higher -- and it could continue to rise. 

That's apt to push consumers to cut back on spending. And once we narrow the gap between supply and demand, the cost of goods as a whole should start to come down. That extends to apparel.

In fact, Morningstar estimates that inflation will be worse in 2022 than in 2023, and it anticipates that consumers will get some relief next year. That's certainly a positive projection.

How to save money on clothing

Regardless of how clothing prices trend in the new year, there are steps you can take to lower your costs. First, skip the expensive brands -- especially when it comes to children's clothing. Kids tend to outgrow apparel quickly, so there's little sense in investing in a $40 sweatshirt when you can buy one for $15 instead. 

Also, shop for clothing at the end of the season instead of the beginning. Rather than purchasing winter coats in October, for example, wait until April, when retailers have excess supply they're looking to get rid of. That's when you're likely to find steep discounts, and at that point, you can buy the next size up in anticipation of your kids needing a larger size for the following season.

Finally, don't be too proud to accept hand-me-downs. If you have friends in town with older children, ask them to pass down gently used articles of clothing for your kids. It's an easy way to save on apparel, and you may be doing your friends a favor by helping them declutter their closets. 

There's reason to believe that apparel costs will be cheaper in the new year. But either way, do what you can to trim your costs so you can free up money for other essential expenses.