Although online inflation rose on the 25e June, its growth begins to slow down.
Online prices increased by 0.3% year-over-year in June, while declining 1% month-over-month, according to the latest Adobe Digital Price Index. As it marked the 25e The month of online inflation year over year, June is the third month that online price increases have slowed.
So far in 2022, consumers have spent a total of $451.7 billion online, up 7.5% year over year. In June, consumers spent $74.1 billion online, representing year-over-year growth of about 1%. Online spending declined in June compared to April ($77.8 billion) and May ($78.8 billion) 2022. The Amazon Prime Day event, which historically drives higher levels of online spending global, takes place on 12 and 13 July this year.
[Read more: Amazon sets official date for Prime Day]
Key categories, including online electronics and apparel, saw prices fall, leading to an overall drop in online retail inflation. In June, 11 of the 18 categories tracked by Adobe 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 saw their prices increase month on month. 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 0.1% year-over-year (4.06% decrease month-over-month) – standing out as the category with the most notable change in June and significantly down from its 9.03% year-on-year rise in May. This is the largest year-on-year drop for the category since March 2021, when prices were down 3.4% year-on-year.
- 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.
- Races: Prices in this category continued to soar and increased by 12.44% YoY (+0.7% MoM), setting a new record on a yearly 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 keep pace with the Consumer Price Index (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 Adobe says consumers continue to bring pets home during the pandemic, 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.
Adobe DPI provides a comprehensive view of the price consumers pay for goods online. 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.
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.