Adobe Digital Price Index: Online Prices Drop 2.6% in June 2023, a 36-Month Low 

Adobe has released its latest findings from the Adobe Digital Price Index (DPI), which provides valuable insights into online inflation trends.

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The company found that online prices experienced a notable decline in June 2023, with a year-over-year (YoY) decrease of 2.6%, marking the largest drop since May 2020 when prices fell 1.5% YoY.

June also represented the tenth consecutive month of YoY price decreases, with more than half of the tracked categories (11 out of 18) observing price declines compared to the previous year.

On a month-over-month (MoM) basis, online prices fell by 1.3% in June.

This downward trend can be attributed to significant declines in categories such as electronics, computers, and appliances, which experienced respective YoY decreases of 12.9%, 16.9%, and 8.3%, as well as MoM decreases of 2.3%, 2.5%, and 1.3%.

Furthermore, staple categories such as groceries and pet products have seen a significant deceleration in year-over-year price increases.

Still, grocery prices rose by 7.6% YoY (0.1% MoM), providing some relief to consumers who have been eagerly awaiting a normalization of food costs.

This follows a trend of consecutive months since September 2022, where YoY price increases for groceries have steadily declined from a record high of 14.3% YoY.

Similarly, online price increases for pet products have also slowed down, with an 8.1% YoY increase in June (0.1% MoM), compared to the previous month’s YoY increase of 10.2% in May 2023 and 11.3% in April 2023.

Examining the DPI data for June, it is evident that 11 out of the 18 categories experienced YoY price decreases, with the most significant drop occurring in the flowers and related gifts category, which witnessed a YoY decrease of 29.7% (and 6.1% MoM).

In contrast, seven categories observed YoY price increases in June, including personal care, pet products, groceries, non-prescription drugs, tools/home improvement, medical equipment/supplies, and apparel.

Adobe DPI Category Highlights for June

• Groceries: The rate of price increases in the grocery category has slowed down, with a YoY rise of 7.6% (and 0.1% MoM) in June, compared to an 8.2% YoY increase in May 2023, 9.3% YoY in April, and 10.3% YoY in March. Online grocery purchases have continued to be popular among consumers, and the price trends in this category align closely with the Consumer Price Index.
• Appliances: Prices for appliances experienced a substantial decline, with an 8.3% YoY decrease (and 1.3% MoM) in June. This marks the highest drop recorded for this category since Adobe began tracking online prices in 2014 and is the ninth consecutive month of falling appliance prices in online sales.
• Electronics: Significant price reductions have been observed in the electronics category in recent months, with a YoY decline of 12.9% (and 2.3% MoM) in June. This follows a 12% YoY drop in May 2023. In comparison, June 2022 witnessed a YoY decrease of 7.3% in electronics prices. Given its status as a major discretionary category, fluctuations in electronics prices significantly impact overall online inflation.
• Pet Products: Prices for pet products exhibited a YoY increase of 8.1% (and 0.1% MoM) in June, representing a slower growth rate compared to the previous months. In May 2023, pet product prices increased by 10.2% YoY, while April 2023 saw an 11.3% YoY increase. The online price increases for pet products peaked in August 2022 when they rose by 12.7% YoY.

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.