Adobe: Inflation for online purchases tracked lower in June
by July 13, 2023 12:13 pm 313 views
Prices of goods sold online in June fell an average 2.6% from a year ago, marking the 10th consecutive month of declines from 2022, according to recent data from the Adobe Digital Price Index.
The decline was also the largest year-over-year decrease in online prices tracked by Adobe since May 2020. On a month-over-month basis, online prices fell 1.3% in June 2023.
Adobe tracks 18 categories each month, and 11 of them saw prices fall from a year ago in June. Leading the lower prices were electronics, down 12.9% from a year ago and 2.3% lower than in May. Computer prices fell 16.8% from a year ago and 2.5% lower than the previous month. The prices of appliances sold online fell 8.3% from June and dipped 1.3% from the May report. As a major discretionary category, Adobe said electronics price movements have a significant impact on overall inflation online.
Flowers and related gifts saw the biggest price deflation in June, down 29.6% from a year ago and 6.1% lower than in May. Analysts said Mother’s Day and graduations in May boosted demand for flowers and gifts and temporarily elevated prices.
Adobe reports seven categories continued to see price inflation over a year ago, including personal care, pet products, groceries, non-prescription drugs, tools/home improvement, medical equipment and apparel.
The prices for online pet products rose 8.1% from June 2022, a bit lower than the 10.2% year-over-year price gains reported in May. Online pet product inflation seemed to have peaked at 11.3% year-over-year in April. Online apparel prices were up 7.13% in June compared to the year-ago period. Overall, apparel prices increased 3.1% year-over-year in June, according to the Consumer Price Index (CPI) reported on July 12 by the U.S. Bureau of Labor Statistics.
Online grocery prices reported by Adobe increased 7.6% in June on top of an 8.2% year-over-year price increase last month. Adobe said while food prices remain elevated from a year ago, they are moving down month to month from the high 14.3% increase in September 2022. According to Adobe analysis, consumers are continuing to purchase more groceries online, and the category has moved in lockstep with the CPI that references the prices of goods and services month-to-month and year over year.
CPI food inflation was up 5.7% in June from a year ago. A number of foods continue to see double-digit price gains over June 2022. The higher grocery prices were led by a 17% increase in the price of frozen vegetables and 12% higher prices for flour, 11% more for sugar, sweets and bread with 10% higher prices for salad dressing. Meanwhile, egg prices were 8% lower than a year ago, milk prices fell 2%, and bacon prices were 10% lower than in June 2022.