The latest online inflation data from Adobes Digital Price Index (DPI) covering the month of April 2023 shows that online prices declined 1.8% Year-over-Year (YoY).
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This marks the eighth consecutive month of YoY price decreases, with 11 out of 18 monitored categories showing a decline in prices compared to the previous year. On a Month-over-Month (MoM) basis, online prices declined by 0.7% in March.
The decline in YoY prices for April was primarily due to significant drops in several categories. For instance, appliances experienced the largest YoY drop of 7.1% (down 2.1% MoM), which is the biggest decline for this category since Adobe began monitoring online prices in 2014.
Other categories, including sporting goods (down 6.4% YoY, up 1.5% MoM), toys (down 5.9% YoY, down 0.2% MoM), and home/garden (down 5.6% YoY, down 0.8% MoM) also saw continued YoY price decreases.
Electronics recorded steeper YoY declines of 11.6% (up 0.5% MoM), while computers experienced a decline of 15.4% YoY (up 1.9% MoM).
While the grocery category has experienced persistent inflation, the YoY price increases have slowed down for seven consecutive months.
In April 2023, grocery prices rose by 9.3% YoY (up 0.4% MoM), which is a smaller jump compared to March 2023’s YoY increase of 10.3% and February 2023’s YoY increase of 11.4%. The rate of growth reached its peak in September 2022 when prices rose by 14.3% YoY.
For the personal care category, which is also non-discretionary, prices were up by 3% YoY (down 1.1% MoM), compared to YoY growth of 4.4% in March 2023 and a more significant increase of 6.1% YoY in February 2023.
Notable categories in the Adobe Digital Price Index for April
Out of the 18 categories monitored by DPI in April, 11 witnessed YoY price decreases, with the flowers/related gifts category experiencing the most significant drop at 27% YoY.
On the other hand, seven categories saw YoY price increases, which included personal care, pet products, grocery, non-prescription drugs, tools/home improvement, medical equipment/supplies, and apparel.
On an MoM basis, prices in 10 of the 18 categories monitored by DPI fell, while eight categories recorded price increases. The categories that experienced price increases included electronics, books, pet products, grocery, non-prescription drugs, computers, sporting goods, and medical equipment/supplies.
Adobe DPI Category Highlights for April
Groceries: YoY price increase for groceries was 9.3% (up 0.4% MoM), but it has slowed down in the past seven months. In March, prices rose by 10.3% YoY, in February, it was 11.4% YoY, in January, it was 12.6% YoY, in December, it was 13.5% YoY, in November, it was 13.7% YoY, and in October, it was 14% YoY.
The rate of price growth reached its peak in September when it rose by 14.3% YoY. As consumers increasingly buy more of their groceries online, this category has generally moved in tandem with the Consumer Price Index.
Personal Care: The prices for this category increased by 3% YoY (down 1.1% MoM), which was lower than the previous month’s increase of 4.4% YoY (March 2023).
In February, prices for this category saw a significant rise of 6.1% YoY. This category has experienced persistent inflation in the long term, with only one month since September 2020 that recorded YoY price decrease, which was in November 2021 (down 0.9% YoY).
Appliances: Appliance prices experienced a YoY decrease of 7.1% (down 2.1% MoM), marking the largest YoY drop for this category since Adobe began tracking online prices in 2014. Appliance prices have now fallen YoY for seven months in a row, after a 29-month continuous increase that began in May 2020.
Sporting Goods: Prices experienced a YoY decrease of 6.4% (up 1.5% MoM), marking the 12th consecutive month of YoY price declines for the category. Before this period, sporting goods prices rose for 28 consecutive months, starting in January 2020.
The price increases peaked in September 2020, with a YoY increase of 15.8%, as more consumers stayed at home during the Covid-19 pandemic and invested in products like fitness equipment.
What Is the Adobe DPI?
The Adobe DPI utilizes the Fisher Price Index to monitor online prices across 18 different categories and is modeled after the structure of the Consumer Price Index (CPI) published by the U.S. Bureau of Labor Statistics.
To determine changes in prices per category, the Fisher Price Index compares the quantities of corresponding products purchased during the current period (month) to those purchased in the previous period (previous month).
Adobe’s analysis is weighted by the real quantities of the products purchased in the two adjacent months.
For the latest updates on online inflation data, follow the Adobe Digital Price Index at this link.
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