CORRECT and REPLACE CHART Adobe Digital Price Index: Online Inflation Slows in June to 0.3% | New
SAN JOSE, Calif.–(BUSINESS WIRE)–July 12, 2022–
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Year-over-year price chart (Graph: Business Wire)
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ADOBE DIGITAL PRICE INDEX: ONLINE INFLATION SLOWS IN JUNE TO 0.3%
- Online prices in June 2022 up 0.3% year on year, down 1% month-over-month
- $74.1 billion was spent online in June; over $451.7 billion spent online year-to-date, up 7.5% year-over-year
- Food prices continue to climb, hitting a new high of 12.44%
Adobe (Nasdaq:ADBE) today announced the latest online inflation data from the Adobe Digital Price Index (DPI), powered by Adobe Analytics. In June 2022, online prices increased 0.3% year-over-year (YoY) while decreasing 1% month-over-month (MoM). Although this is the 25th month of online inflation year-on-year, June is the third month that online price increases have slowed.
Key categories, including online electronics and apparel, saw prices fall, leading to an overall drop in online retail inflation. Electronics saw price declines of 7.28% YoY (down 1.34% MoM). Clothing prices fell 0.10% year on year (down 4.06% year on month), down significantly from the 9.03% year on year increase in May. Groceries, tools and home improvement, and pet products are the categories where prices have continued to climb. Food prices hit record highs, rising 12.44% YoY (up 0.71% MoM). Tools and home improvements were up 10.44% YoY (0.60% MoM). Petcare was up 11.3% YoY (up 2% MoM).
In 2022 so far, consumers spent a total of $451.7 billion online, growing 7.5% year-over-year. In June, consumers spent $74.1 billion online, representing annual growth of about 1%. Online spending fell in June compared to April ($77.8 billion) and May ($78.8 billion). The Prime Day event – which historically drives higher levels of overall online spending in June – will take place in July this year.
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 June, 11 of the 18 categories tracked by the DPI saw year-over-year price increases, with groceries rising the most. Price declines were seen in seven categories: electronics, jewelry, books, toys, computers, sporting goods and clothing.
Eleven of the 18 categories of the DPI saw their prices increase MoM. Price drops were seen in seven categories, including electronics, office supplies, books, appliances, flowers and related gifts, computers and clothing.
Notable categories in the Adobe Digital Price Index for June:
- Clothes: Prices were down 0.10% YoY (down 4.06% MoM) – standing out as the category with the most notable change in June. This is the largest year-on-year drop for the category since March 2021, when prices were down 3.4% year-on-year. Price cuts in this category help lower overall e-retail inflation.
- Electronic: Prices continued to fall 7.28% YoY (down 1.34% YoY). This is the largest year-on-year decline for the category since May 2020, when prices were down 6.8% year-on-year. As the largest e-commerce category in terms of spend share, price movements have an outsized impact on overall online inflation.
- Races: Prices continued to soar and increased by 12.44% over one year (+0.7% over one month), setting a new record on an annual basis. This follows a string of record highs: 11.7% YoY increase in May, 10.3% YoY increase in April, 9% YoY increase in March and 7.6% YoY increase in february. Grocery remains one of the main categories to move in line with the CPI over the long term, with online prices now rising for 29 consecutive months.
- Pet products: Prices rose 11.35% YoY (+2.01% YoY), continuing to set annual records for the category. Online pet product inflation has now been seen for 26 straight months as consumers continue to bring pets home, driving demand.
- Tools and home improvement: Prices rose 10.44% year on year (0.60% month on month), the category’s largest increase on a yearly basis. June also marks the 19th consecutive month of year-over-year inflation for the category.
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.
Adobe is changing the world through digital experiences. For more information, visit www.adobe.com.
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PUBLISHED: 7/12/2022 6:48 PM / DISK: 7/12/2022 6:48 PM