On Tuesday, Adobe released its latest Digital Price Index report, which showed that July’s prices fell 1% year-over-year and 2% on a monthly basis. It was the first recorded period of deflation after 25 months in a row of rising prices for goods, Adobe found.
So if you opted not to splurge on Prime Day and regret it, or simply have a little room in your summer budget, just remember that all categories of online prices didn’t behave equally.
The five biggest declines month-over-month were:
- Apparel (-6.26%)
- Computers (-3.23%)
- Toys (-2.86%)
- Jewelry (-2.20%)
- Electronics (-1.98%)
Of the 18 categories Adobe tracks, the only ones that continue to see red-hot inflation numbers were Pet Products, Grocery, Nonprescription Drugs and Tools & Home Improvement. Pet Products led the pack month-over-month with a 1.72% jump.
“Wavering consumer confidence and a pullback in spending, coupled with oversupply for some retailers, is driving prices down in major online categories like electronics and apparel,” said Patrick Brown, vice president of growth marketing and insights, Adobe. “It provides a bit of relief for consumers, as the cost of food continues to rise both online and in stores.”
The year-over-year numbers for July 2022 showed lofty deflation numbers in some categories, with spiking inflation in others. These were the top 5 decliners:
- Computers (-10.22%)
- Electronics (-9.32%)
- Toys (-8.22%)
- Books (-3.49%)
- Jewelry (-3.10%)
Other online shopping categories are still on a meteoric path of inflation after the last year, such as Grocery (13.40%), Pet Products (12.61%) and Tools & Home Improvement (10.84%).
Some of the price reductions can be tied to consumers 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 they were seeing rising inventories, not all of it desirable product.
In June, Target announced that it was slashing prices and cancelling supplier orders to clear out “elevated” inventories before the all-important fall and holiday shopping seasons.
Overall, Americans spent $400 million less than they did in the prior month ($73.7 billion), Adobe found.
Adobe’s index is powered by Adobe Analytics, which “analyzes one trillion visits to retail sites and over 100 million SKUs” over 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 drug and office supplies.