'Furniture Today' reports that the price of Cotton is two to three times what it was a year ago and at historic highs. That translates to 30% to 50% at manufacturer's cost for fabric. Is it a spike or long-term? The opinions vary in the article, but based on what I know of the industry I would expect to see price increases in fabric-covered upholstery after the 1st of the year unless pressure on the cost of cotton subsides. Most likely what you will see at the consumer level is fabric grades changing. For example a fabric now a Price Grade C will become a D., etc.

They also note that the costs of particleboard is up considerably, which will affect Asian imports more than any other category.