Adobe: Online prices show encouraging trend in May
Digital shoppers had something to smile about in May 2023.
According to the latest data from the Adobe Digital Price Index (DPI), based on Adobe Analytics, U.S. online prices in May 2023 fell 2.3% year-over-year (YoY), marking the ninth consecutive month of YoY price decreases. This decline was also the biggest decrease in online prices tracked by Adobe since the COVID-19 pandemic started.
On a month-over-month (MoM) basis, online prices fell 1.2% in May. According to Adobe analysis, May’s YoY price decline was driven by steep drops in discretionary categories including computers (down 16.5% YoY and 2.4% MoM), electronics (down 12% YoY and 1.8% MoM), and appliances (down 7.9% YoY and 2.4% MoM).
In total, 11 of 18 online price categories tracked by Adobe declined YoY in May. The largest YoY drop occurred in the flowers/related gifts category, down 27.8% YoY and 0.3% MoM.
Adobe data also indicates that YoY price increases have slowed in recent months for consumer staples. Although grocery prices were up 8.2% YoY (and 0.3% MoM), inflation slowed compared with April 2023’s 9.3% YoY increase.
[Read more:Adobe: Online prices keep falling in April]
This marks the eighth consecutive month where YoY price increases for groceries have decelerated from September 2022’s record high, when prices rose 14.3% YoY.
In the personal care category, prices were up 2.7% YoY (down 0.3% MoM), slowing compared with 3% YoY growth in April 2023 and 4.4% YoY growth in March 2023.
Notable categories in the Adobe Digital Price Index for May 2023
• Groceries: Prices rose 8.2% YoY (and 0.3% MoM), but have continuously slowed for the past eight consecutive months, rising 9.3% YoY in April, 10.3% YoY in March, 11.4% YoY in February, 12.6% YoY in January, 13.5% YoY in December, 13.7% YoY in November and 14% YoY in October. In September, the rate of
price growth peaked, rising 14.3% YoY. Consumers are increasingly buying more of their groceries online, according to Adobe, and this category has generally moved in lock step with the Consumer Price Index.
• Personal care products: Prices were up 2.7% YoY (down 0.3% MoM), the latest sequential decrease since February 2023, when price growth hit 6.1% YoY. This category continues to see persistent, long-term inflation; since September 2020, only a single month saw prices fall YoY: November 2021 (down 0.9% YoY).
• Appliances: Prices were down 7.9% YoY (and 2.4% MoM), the highest drop for this category since Adobe began tracking online prices in 2014. May marked the eighth consecutive month of falling appliance prices.
• Home and garden: Prices were down 6.3% YoY (down 0.9% MoM), continuing reductions in costs of home and garden products.
The Adobe DPI is modeled after the Consumer Price Index (CPI), published by the U.S. Bureau of Labor Statistics and uses the Fisher Price Index to track online prices. The Fisher Price Index uses quantities of matched products purchased in the current period (month) and a previous period (previous month) to calculate the price changes by category. Adobe’s analysis is weighted by the real quantities of the products purchased in the two adjacent months.
