Shoe prices sank in April in tandem with overall inflation, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).

In April, retail footwear prices slid 1.3 percent from a year ago, the sharpest drop in 21 months and second steepest in more than four years, the FDRA noted. This comes as prices dropped 2.9 percent year-over-year for children’s shoes, the most in more than four years, and a 1.5 percent decline in men’s footwear, the most in 21 months. Women’s shoe prices declined a modest 0.6 percent but is still lower than seven of the last nine months.

Gary Raines, chief economist at FDRA, told FN that over the long term, year-over-year percent changes in retail footwear prices tend to move in step with year-over-year percent changes in duties paid on footwear imports. 

“Echoing our caution last month, the problem is that duties paid on footwear imports in the latest month surged the most in years, while retail footwear prices declined,” Raines said. “This divergence suggests someone along the supply chain is eating that cost differential and losing margin. This notion supports anecdotal evidence heard from several across the industry.”

This movement in shoe prices comes one day after the United States and China issued a joint statement on their agreement to substantially lower tariff rates. Starting on Wednesday, U.S. tariffs on Chinese imports will be 30 percent, down from 145 percent, while China’s duties on American imports will be 10 percent, from 125 percent. The parties plan to continue with talks over the 90 days that hopefully will lead toward a new trade agreement.

But while the U.S.-China tariff pause is a step in the right direction for fashion, footwear and retail, there’s still more that needs to be done in terms of trade deals to ease the tax burdens.

That’s the consensus from fashion and retail trade groups, which said on Monday that they continue to push for better trade deals over the long haul that protect American firms and consumers.

Last month’s drop in retail footwear prices also comes at the same time the Bureau of Labor Statistics reported that overall inflation slowed even further in April.

The bureau’s latest Consumer Price Index (CPI), a broad measure of goods and services costs across the U.S. economy, saw prices increase 0.2 percent on a seasonally adjusted basis in April, after falling 0.1 percent the prior month. Prices were also up 2.3 percent over the last 12 months, after rising 2.4 percent in March.

The bureau noted that the April change was the smallest 12-month increase in the “all items” index since February 2021.

Excluding volatile food and energy costs, the core CPI rose 0.2 percent in April and increased 2.8 percent over the same time last year.