- Online prices dropped 1.6% compared with July 2022, and 0.9% from June 2023
- Grocery price increases have now slowed for 10 consecutive months
- Categories including appliances, furniture/bedding and electronics continue to see notable price drops
SAN JOSE, Calif. — Aug. 8, 2023 — Today, Adobe (NASDAQ:ADBE) announced the latest online inflation data from the Adobe Digital Price Index (DPI), powered by Adobe Analytics. Online prices in July 2023 fell 1.6% year-over-year (YoY), marking the eleventh consecutive month of YoY price decreases, with the majority of categories (11 of 18) tracked by Adobe seeing falling prices on an annual basis. On a month-over-month (MoM) basis, online prices fell 0.9% in July.
July’s YoY price decline was driven by notable drops in categories such as appliances, which fell 8% YoY (down 0.3% MoM), as well as furniture/bedding which fell 3.5% YoY (down 0.7% MoM). Steeper YoY declines were observed in electronics, which fell 11.7% YoY (down 0.7% MoM) as well as computers, which fell 15.4% YoY (down 1.5% MoM).
Although the grocery category has experienced persistent inflation, YoY price increases have now slowed for 10 consecutive months. Grocery prices were up 6.3% YoY (up 0.3% MoM), a smaller jump compared with June 2023’s 7.6% YoY and May 2023’s 8.2% YoY increases. Price increases have slowed for pet products as well; Prices were up 6.3% YoY (down 0.1% MoM), compared with an 8.1% YoY increase in June 2023, and an even more substantial 10.2% YoY increase in May 2023.
Notable Categories In The Adobe Digital Price Index For July
Adobe’s Digital Price Index provides the most comprehensive view into how much consumers pay for goods online, complementing the Bureau of Labor Statistics’ Consumer Price Index, which captures offline prices.
Powered by Adobe Analytics, the DPI analyzes one trillion visits to retail sites and over 100 million SKUs across 18 product categories: electronics, apparel, appliances, books, toys, computers, groceries, furniture/bedding, tools/home improvement, home/garden, pet products, jewelry, medical equipment/supplies, sporting goods, personal care products, flowers/related gifts, non-prescription drugs and office supplies.
In July, 11 of the DPI’s 18 categories saw YoY price decreases, with the flowers/related gifts category falling the most at 31.6% YoY. Seven categories experienced YoY price increases, including personal care, pet products, grocery, non- prescription drugs, tools/home improvement, medical equipment/supplies and apparel.
On a MoM basis, 16 of the 18 categories in the DPI saw prices fall. Price increases were observed in only two categories including groceries and non-prescription drugs.
Notable categories for July 2023 include:
- Groceries: Prices rose 6.3% YoY (up 0.3% MoM) but have slowed in the past 10 months, rising 7.6% YoY in June, 8.2% YoY in May, 9.3% YoY in April, 10.3% YoY in March, 11.4% YoY in February, 12.6% YoY in January, 13.5% YoY in December, 13.7% YoY in November and 14% YoY in October. In September, the rate of price growth peaked, rising 14.3% YoY. Consumers are increasingly buying more of their groceries online, and this category has generally moved in lock step with the Consumer Price Index.
- Pet Products: Prices were up 6.3% YoY (down 0.1% MoM), a smaller increase than the month prior, when prices rose 8.1% YoY (June 2023). In August 2022, prices for the category rose substantially and peaked at 12.7% YoY. This category has seen persistent inflation on a long-term basis, with YoY price increases observed in every month since May 2020.
- Appliances: Prices were down 8% YoY (down 0.3% MoM) after hitting a record low in June 2023, where prices fell 8.3% YoY. Appliance prices online have now fallen YoY for 10 consecutive months, after having risen for 29 consecutive months starting in May 2020, peaking at 7.1% YoY in December 2020.
- Electronics: Prices have continued to fall sharply in recent months, dropping 11.7% YoY (down 0.7% MoM) and 12.9% YoY in June 2023. Contrast this with a year ago, in July 2022, when prices were down 9.3% YoY. As a major discretionary category, electronics price movements have a significant impact on overall inflation online.
About Adobe
Adobe is changing the world through digital experiences. For more information, visit www.adobe.com. *Per the Digital Commerce 360 Top 500 report (2021)
