Online prices fall for the first time in 2 years
Prices dropped in most of the categories tracked by Adobe, except for food
Online prices have declined for the first time in over two years, according to recent data.
The Adobe Digital Price Index revealed that online prices dipped 1% in July compared to a year ago after rising 0.3% in June.
Additionally, prices also dropped for a second month on a month-over-month basis, falling 2% in July after dropping 1% in June, which underscores how e-commerce is finally entering deflation.
It's a nice break for consumers who have faced 25 consecutive months of persistent inflation online. Prices even reached a record 3.6% increase year-over-year in February and March 2022.
AMID INFLATION, PEOPLE DESPERATE FOR CASH ARE TURNING TO PAWN SHOPS
Seven out of 18 categories tracked by Adobe in July — including electronics, jewelry, books, toys, computers, sporting goods and apparel — saw year-over-year price drops. However, 14 categories saw month-over-month price drops.
The price of all electronics, in particular, saw one of biggest drops in July, falling 9.3% compared to a year earlier. Prices of electronics also decreased 2% from June.
Woman using her credit card to make a purchase. (iStock) (iStock / iStock)
The cost for apparel fell 1% year-over-year for the second consecutive month and dropped 6.3% since June, according to the data. Meanwhile, the cost of toys also fell 8.2% year-over-year and 2.9% since June.
AMERICANS' INFLATION EXPECTATIONS DECLINED SHARPLY IN JULY, NEW YORK FED SAYS
Wavering consumer confidence combined with a pullback in spending and oversupply for some retailers "is driving prices down in major online categories like electronics and apparel," according to Patrick Brown, Adobe vice president of growth marketing and insights.
Consumer making a purchase online. (iStock / iStock)
Regardless, it's providing some relief for consumers who are battling surging food costs online and in-store, Brown added.
CLICK HERE TO READ MORE ON FOX BUSINESS
Food costs was one category that hasn't let up. According to the data, prices for groceries jumped a record 13.4% compared to a year ago. That's the biggest increase of all 18 categories.
Throughout the entire month of July, consumers doled out $73.7 billion online, which is up 20% from a year ago. Prime Day, Amazon's highly anticipated 48-hour shopping holiday, drove record online sales for the entire industry last month, according to Adobe.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ADBE | ADOBE INC. | 473.44 | -3.68 | -0.77% |
| AMZN | AMAZON.COM INC. | 173.67 | -2.92 | -1.65% |