Aussie floods rain on London suits

Photo / Dean Purcell

Long-range cause and effect ... Tropical storms batter Australia, the price of a new suit goes up in Britain.

UK suit prices are expected to rise 10 per cent this year following record wool prices after flooding in Queensland and Victoria.

Globally, wool output is at its lowest levels for 85 years. Growing demand for wool suits from wealthy Chinese businessmen has also contributed to the surge in prices.

Wool brokers in Australia cut their inventories to almost zero. And British suit makers have had to respond. Harvie & Hudson, a family business on London's Jermyn St, has added 50 ($100) to its suits.

Prices are expected to stay high for several years while farmers build up sheep numbers.

Retailers are nervous about having to increase prices in recessionary times.

The UK head of the 450-store Hugo Boss chain, Bernd Hake, said: "If the wool price remains on this level, we'll readjust our prices."

- Independent