U.S. toy prices rose 6.6% over the past year, according to the latest consumer inflation data, adding pressure to holiday shopping budgets.
Prices climbed 4.2% from August on a seasonally adjusted basis. Apparel and footwear prices also rose in September, but the increase for toys was larger than for other consumer categories.
China makes most toys sold in the U.S., leaving the industry exposed to changing tariff policies. Many toys also use petroleum-based plastics, so higher oil prices linked to the Middle East conflict could add to their cost.
David Silverman, a senior director at Fitch Ratings, said tariffs and energy costs appear to be showing up in prices. He said the Iran conflict’s effects on commodity and shipping costs would persist for the next several quarters.
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