Consumers might want to begin stocking up on T-shirts and boxer shorts, because world cotton prices are on the rise.
Flooding in Pakistan and China, two of the world’s biggest cotton growers, has created concerns about supplies, sending prices higher.
Prices of futures contracts rose 16 percent during August to their highest rate since May 2008, following floods that damaged Pakistani crops.
The U.S. Department of Agriculture slashed its forecast for Pakistan’s cotton output 6.9 percent during August. In the meantime, global demands have risen sharply as world economies rebounded in the past year.