Online prices fell 0.2 per cent on an annual basis in September, while rising 0.8 per cent month-over-month. Electronics and computer prices fell sharply, along with modest price decreases in toys and sporting goods. Grocery prices hit another record high, while pet products and tools/home improvement prices remained elevated
Recently, Adobe announced the latest online inflation data from the Adobe Digital Price Index (DPI), powered by Adobe Analytics. In September 2022, online prices fell 0.2 per cent year-over-year (YoY) while rising 0.8 per cent month-over-month (MoM). In the month prior (Aug. 2022), online prices increased 0.4 per cent YoY. In July 2022, e-commerce entered deflation for the first time after 25 consecutive months of rising prices, dropping 1 per cent YoY.
Adobe Digital Price Index: Analyzing the September Decline of 0.2%
Prices for electronics, the largest category in e-commerce with an 18.6 per cent share of spending in 2021, fell sharply and decreased 11.3 per cent YoY (down 1.2 per cent MoM). This is a greater YoY decrease than August (down 10 per cent YoY) and July (down 9.3 per cent YoY). Prices for computers also fell significantly and decreased 14.1 per cent YoY (down 1.9 per cent MoM), greater than the month prior when prices fell 12.6 per cent YoY. The September price decreases for electronics and computers are both record lows in 2022.
Prices for food have remained high, with grocery prices rising 14.3 per cent YoY (up 0.8 per cent MoM), another record YoY high and the largest increase of any category. Prices for pet products also remain elevated, increasing 11.8 per cent YoY (up 0.01 per cent MoM). Other categories that saw prices jump in September include tools/home improvement (up 10.5 per cent YoY, up 0.3 per cent% MoM) and apparel (up 4.7 per cent YoY, up 6.6 per cent MoM)—another major category in e-commerce, second only to electronics.
The DPI provides the most comprehensive view into how much consumers pay for goods online, as e-commerce expands to new categories and as brands focus on making the digital economy personal. Powered by Adobe Analytics, it analyses 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, jewellery, medical equipment/supplies, sporting goods, personal care products, flowers/related gifts, non-prescription drugs and office supplies.
On September, 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, jewellery, books, toys, flowers/related gifts, computers and sporting goods.
Eight of the 18 categories in the DPI saw price increases MoM. Price drops were observed across ten categories including electronics, personal care products, jewellery, books, furniture/bedding, toys, home/garden, appliances, computers and sporting goods.
Notable Categories in the Adobe Digital Price Index for September:
- Electronics: Prices were down 11.3 per cent YoY (down 1.2 per cent MoM), falling faster than pre-pandemic levels when electronic prices fell 9.1 per cent YoY on average between 2015 and 2019. Prices have fallen consistently since Dec. 2021 (down 2.6 per cent YoY) and accelerated in recent months (down 10 per cent YoY in August, down 9.3 per cent YoY in July).
- Computers: Prices were down 14.1 per cent YoY (down 1.9 per cent MoM), the biggest drop since the beginning of the COVID-19 pandemic in March 2020. Computer prices have fallen online for 21 consecutive months and now outpace pre-pandemic levels when prices fell 9.2 per cent on average between 2015 and 2019.
- Groceries: Prices continued to surge and rose 14.3 per cent YoY (up 0.8 per cent MoM), more than any other category. It is a new record on an annual basis, following a series of record highs: 14.1 per cent YoY increase in August, 13.4 per cent YoY increase in July, 12.4 per cent YoY increase in June. Grocery prices have risen for 32 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 11.8 per cent YoY (up 0.01 per cent MoM), slightly below the record YoY high in the month prior (up 12.7 per cent YoY in August). Online inflation for pet products has now been observed for 29 consecutive months, as pet ownership surged during the COVID-19 pandemic and demand for related goods remains high.
