Online shopping prices fell for the first time in 2 years

Gas prices which is easing and inflation shows signs of cooling – but wait, there is more good news: online shopping prices fell for the first time in two years, according to new data from Adobe Analytics.

On Tuesday, Adobe released its latest Digital Price Index report, which showed that July prices fell 1% year-over-year and 2% month-over-month. It was the first period of deflation on record after 25 consecutive months of rising commodity prices, Adobe found.

So if you choose do not splurge on Prime Day and disappointed, or simply have a little room in your summer budget, just remember that all online price categories do not behave the same.

The five biggest monthly declines are:

  • Clothing (-6.26%)
  • Computer (-3.23%)
  • Games (-2.86%)
  • Jewelry (-2.20%)
  • Electronics (-1.98%)

Of Adobe’s 18 track categories, the only ones that continue to see red-hot inflation numbers are Pet Products, Wholesale, Non-Prescription Drugs and Appliances & Home Improvement. Pet Products led the pack month-on-month with a 1.72% jump.

“Wavering consumer confidence and a pullback in spending, coupled with oversupply for some retailers, has driven prices down in major online categories like electronics and apparel,” said Patrick Brown, vice president of marketing growth and insight, Adobe. “It provides some relief to consumers, as the cost of food is rising both online and in stores.”

The year-over-year figures for July 2022 show high deflation figures in some categories, with inflation rising in others. Here are the 5 most down:

  • Computer (-10.22%)
  • Electronics (-9.32%)
  • Games (-8.22%)
  • Books (-3.49%)
  • Jewelry (-3.10%)

Other online shopping categories are still on track for inflation after last year, such as Grocery (13.40%), Pet Products (12.61%) and Appliances & Home Improvement (10.84%).

Some price reductions can be linked to customers changing their behavior after loading up on some items during the pandemic. Earlier this summer, Target and other major retailers like Macy’s, Kohl’s and Walmart confirmed that they were seeing an increase in inventory, not all of the products they wanted.

In June, Target announced that it is cutting prices and canceling supplier orders to clear “go” inventory ahead of the crucial fall and holiday shopping seasons.

Overall, Americans spent $400 million less than the month before ($73.7 billion), Adobe found.

The Adobe Index is powered by Adobe Analytics, which “analyzes one trillion visits to retail sites and more than 100 million SKUs” in more than 18 product categories: electronics, clothing, appliances, books, toys, computers, groceries, furniture/beds, tools/repairs earth , home / garden, pet products, jewelry, medical equipment / supplies, sporting goods, personal care products, flowers / related gifts, non-prescription drugs and office supplies.

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