Adobe Digital Price Index

E-Commerce Enters Deflation for the First Time in Over Two Years - Seite 2

In July, 11 of the 18 categories tracked by the DPI saw YoY price increases, with groceries rising the most. Price drops were observed in seven categories: electronics, jewelry, books, toys, computers, sporting goods and apparel.

Only four of the 18 categories in the DPI saw price increases MoM. Price drops were observed across 14 categories including electronics, personal care products, office supplies, jewelry, books, furniture/bedding, toys, home/garden, appliances, flowers/related gifts, computers, sporting goods, medical equipment/supplies and apparel.

Notable categories in the Adobe Digital Price Index for July:

• Electronics: Prices were down 9.3% YoY (down 2% MoM), bringing it back to pre-pandemic levels when electronic prices fell 9.1% YoY on average between 2015 and 2019. As the biggest category in e-commerce by share of spend, price movements have an outsized impact on overall inflation online.

• Apparel: Prices were down 1% YoY, while falling significantly on a monthly basis (down 6.3% MoM). This is the first notable YoY decrease for the category, as prices only fell by 0.1% YoY in June. It comes after 14 consecutive months where prices had risen consistently, reversing a predictable pattern of heavy discount periods.

• Toys: Prices were down 8.2% YoY (down 2.9% MoM), the largest YoY drop for the category since December 2019, when prices were down 10% YoY during the holiday shopping season. This is the 16^th consecutive month of deflation for the category, after prices had risen 0.2% YoY in March 2021.

• Groceries: Prices continued to surge and rose 13.4% YoY (up 1.4% MoM), more than any other category. It is a new YoY record, following a 12.4% YoY increase in June, a 11.7% YoY increase in May and a 10.3% YoY increase in April—all previous record highs. Grocery prices have risen for 30 consecutive months, and it remains the only category to move in lockstep with the Consumer Price Index on a long-term basis.

• Pet Products: Prices were up 12.6% YoY (up 1.7% MoM), a record YoY high for the category. This follows a 11.3% YoY increase in June, and a 9.1% YoY increase in May. Online inflation for pet products has now been observed for 27 consecutive months, as pet ownership surged during the COVID-19 pandemic and demand for related goods remains high.

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