People are paying more for clothes even as retailers mark down prices

Excess inventory has racked up in many retailers’ warehouses and stores. But shoppers are still paying more as they refresh the closet.

Apparel prices rose 0.8% in June compared to May, and 5.2% year over year, according to the Bureau of Labor Statistics’ consumer price index Wednesday. Overall, the inflation gauge, which includes everyday items such as food and gas, rose a higher-than-expected 9.1% from a year earlier.

In recent weeks, many prominent companies and investors have warned of a recession. Retailers, including Target, Gap and Walmart, announced plans for more markdowns to get rid of unwanted merchandise.

Yet apparel sales and prices — at least so far — are topping last year’s levels. The labor market remains robust, too: The jobs report for June defied recession fears, as the unemployment rate remain unchanged and payrolls beat expectations.

“It’s all about experience,” said Kristen Classi-Zummo, an industry analyst who covers fashion apparel for The NPD Group. “A return to getting back out is really what’s driving the apparel growth. This experiential re-emergence that we still didn’t see fully last year.”