Wednesday, October 5 2022

SAN JOSE, Calif.–(BUSINESS WIRE)–Adobe (Nasdaq: ADBE) today announced the latest online inflation data for the Adobe Digital Price Index (DPI), provided by Adobe Analytics. In July 2022, online prices fell by 1% year-over-year (YoY) – after rising 0.3% YoY in June and 2% YoY in May – and falling 2% on a monthly basis. July is the first month that e-commerce entered deflation, after 25 consecutive months of persistent online inflation. Most of the categories tracked by the DPI (14 out of 18) saw month-over-month (MoM) price declines in July.

Prices for electronics, the largest e-commerce category with 18.6% spend share in 2021, fell sharply and fell 9.3% yoy (down 2% yoy) . This is a larger year-on-year decline than in June (down 7.3% year-on-year) and May (down 6.5% year-on-year). Clothing prices fell 1% year-on-year (down 6.3% month on month), marking the second month in a row that prices fell after falling 0.1% year-on-year in June. Clothing prices have risen for 14 consecutive months since April 2021, with prices soaring in recent months (up 9% yoy in May, 12.3% yoy in April and 16.3% yoy in April). year-over-year in March). Toy prices fell significantly, falling 8.2% year-over-year (down 2.9% month-on-month), a year-over-year high for the category in the past 31 months. Food costs, however, remained elevated, with grocery prices rising 13.4% year-on-year (up 1.4% year-on-year), a record high year-on-year and the largest increase in all categories.

In July, consumers spent $73.7 billion online, down $400 million from the previous month ($74.1 billion). However, on an annual basis, e-commerce spending in July rose 20.9%, with Prime Day driving record online sales for the entire retail industry. Online spending in July was also down from May ($78.8 billion) and April ($77.8 billion). E-commerce demand remains resilient year-to-date, with consumers spending $525.4 billion online so far in 2022, growing 9.2% year-on-year.

“Fluttering consumer confidence and lower spending, coupled with oversupply for some retailers, are driving down prices in key online categories like electronics and apparel,” said Patrick Brown, vice president of the growth marketing and insights at Adobe. “This is a bit of a relief to consumers as the cost of food continues to rise both online and in stores.”

DPI provides the most comprehensive view of the price consumers pay for goods online, as e-commerce expands into new categories and brands focus on personalization in the digital economy. Powered by Adobe Analytics, it analyzes one trillion retail site visits 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 18 categories tracked by the DPI saw year-on-year price increases, with groceries rising the most. Price declines were seen in seven categories: electronics, jewelry, books, toys, computers, sporting goods and clothing.

Only four of the DPI’s 18 categories saw their prices increase MoM. Price drops were seen in 14 categories, including electronics, personal care products, office supplies, jewelry, books, furniture/bedding, toys, home/garden, appliances appliances, related flowers/gifts, computers, sporting goods, medical equipment/supplies and clothing.

Notable categories in the Adobe Digital Price Index for July:

  • Electronic: Prices fell 9.3% YoY (down 2% YoY), bringing them back to pre-pandemic levels when electronics prices fell 9.1% YoY in average between 2015 and 2019. have an outsized impact on overall inflation online.
  • Clothes: Prices fell by 1% year-on-year, while falling significantly on a monthly basis (down 6.3% year-on-month). This is the first notable year-on-year decline for the category, with prices falling just 0.1% year-on-year in June. This comes after 14 consecutive months where prices had risen steadily, reversing a predictable pattern of heavy discount periods.
  • Toys: Prices were down 8.2% YoY (down 2.9% YoY), the category’s biggest year-on-year drop since December 2019, when prices were down 10% YoY during the holiday season. It’s the 16the consecutive month of deflation for the category, after prices rose 0.2% year-on-year in March 2021.
  • Races: Prices continued to climb and were up 13.4% YoY (+1.4% YoY), more than any other category. This is a new high year-on-year, following a 12.4% year-on-year increase in June, an 11.7% year-on-year increase in May and a 10.3% year-on-year increase in April, all previous records. Grocery prices have risen for 30 straight months, and it remains the only category to keep pace with the consumer price index on a long-term basis.
  • pet products: Prices rose 12.6% year-on-year (+1.7% month-on-month), a year-on-year record for the category. This follows an 11.3% year-on-year increase in June and a 9.1% year-on-year increase in May. Online pet product inflation has now been seen for 27 consecutive months as pet ownership has increased during the COVID-19 pandemic and demand for related products remains high.

Methodology

The DPI is modeled after the Consumer Price Index (CPI), published by the US Bureau of Labor Statistics and uses the Fisher Price Index to track prices online. The Fisher Price Index uses the quantities of matched products purchased during the current period (month) and a previous period (previous month) to calculate price changes by category. Adobe’s analysis is weighted by the actual quantities of products purchased in the adjacent two months.

Powered by Adobe Analytics, Adobe uses a combination of Adobe Sensei, Adobe’s AI and machine learning framework, and manual effort to segment products into categories defined by the CPI manual. The methodology was first developed alongside renowned economists Austan Goolsbee and Pete Klenow.

About Adobe

Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.

© 2022 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe in the United States and/or other countries. All other trademarks are the property of their respective owners.

Previous

E-Commerce in Parcel Delivery: 2022 Market Outlook by Market Entry Strategies, Economic Impact Countermeasures and Forecast to 2028 with Top Players

Next

Manulife Financial's second quarter pace reflects NCV growth in the U.S. and Canada and rising book value (NYSE:MFC)

Check Also