Adobe: Online Prices Fall 2.6% in June, a 36-Month Low
Online prices in June 2023 fell 2.6 percent year-over-year (YoY), the most significant decrease since May 2020, when prices fell 1.5 percent YoY, according to the latest online inflation data from the Adobe Digital Price Index. June marks the 10th consecutive month of YoY price decreases, with over half of Adobe’s tracked categories (11 of 18) seeing prices fall on a YoY basis. On a month-over-month (MoM) basis, online prices fell 1.3 percent in June. Price drops have been driven by sharp declines in categories including electronics, computers and appliances, with the largest drop in the flowers and related gifts category, which fell 29.7 percent YoY (and 6.1 percent MoM). June marks the ninth consecutive month where YoY price increases for groceries have decelerated from September 2022’s record high, when prices rose 14.3 percent YoY.
By contrast, seven categories experienced YoY price increases in June, including personal care, pet products, groceries, non-prescription drugs, tools/home improvement, medical equipment/supplies, and apparel. Adobe’s Digital Price Index provides a 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.
Credit: Adobe
Total Retail's Take: While the majority of retail categories are showing a reprieve for consumers from inflationary prices, certain categories are still being hit hard. Pet product prices have skyrocketed 8.1 percent since June 2022, according to Adobe's report. Not far behind that is grocery, which increased 7.5 percent YoY. Higher prices is likely one factor that's leading to consumers continuing to spend conservatively. As a result, retailers may need to offer additional promotions to incentivize purchases, further driving down pricing averages. Annual inflation peaked in June 2022 at 9.1 percent and has been falling ever since, according to the Consumer Price Index. Lowering prices across multiple categories are a welcome change for shoppers, which could benefit retailers and brands in these markets.
- Companies:
- Adobe
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
