Online prices in July 2023 fell 1.6 percent year-over-year (YoY), marking the eleventh consecutive month of YoY price decreases, according to the Adobe Digital Price Index* (DPI).

Prices fell for 11 of the 18 categories tracked by Adobe in July. On a month-over-month (MoM) basis, online prices fell 0.9 percent in July. 

July’s YoY price decline was driven by notable drops in categories such as appliances, which fell 8 percent YoY (down 0.3 percent MoM), and furniture/bedding, which fell 3.5 percent YoY (down 0.7 percent MoM). Steeper YoY declines were observed in electronics, which fell 11.7 percent YoY (down 0.7 percent MoM) and computers, which fell 15.4 percent YoY (down 1.5 percent MoM). 

Although the grocery category has experienced persistent inflation, YoY price increases have slowed for ten consecutive months. Grocery prices were up 6.3 percent YoY (up 0.3 percent MoM), a smaller jump than June 2023’s 7.6 percent YoY and May 2023’s 8.2 percent YoY increases. 

Price increases have also slowed for pet products. Prices were up 6.3 percent YoY (down 0.1 percent MoM), compared with an 8.1 percent YoY increase in June 2023 and an even more substantial 10.2 percent YoY increase in May 2023.

Notable categories in the Adobe Digital Price Index for July
In July, 11 of the DPI’s 18 categories saw YoY price decreases, with the flowers/related gifts category falling the most at 31.6 percent YoY. Seven categories experienced YoY price increases, including personal care, pet products, grocery, non-prescription drugs, tools/home improvement, medical equipment/supplies, and apparel.

On a MoM basis, 16 of the 18 categories in the DPI saw prices fall. Price increases were in only two categories, including groceries and non-prescription drugs.

Notable categories for July 2023 include:

  • Groceries: Prices rose 6.3 percent YoY (up 0.3 percent MoM) but slowed in the past ten months, rising 7.6 percent YoY in June, 8.2 percent YoY in May, 9.3 percent YoY in April, 10.3 percent YoY in March, 11.4 percent YoY in February, 12.6 percent YoY in January, 13.5 percent YoY in December, 13.7 percent YoY in November and 14 percent YoY in October. In September, the price growth rate peaked, rising 14.3 percent YoY. Consumers were found to be increasingly buying more groceries online, and this category has generally moved in lock step with the Consumer Price Index.
  • Pet Products: Prices were up 6.3 percent YoY (down 0.1 percent MoM), a smaller increase than the month prior when prices rose 8.1 percent YoY (June 2023). In August 2022, prices for the category rose substantially and peaked at 12.7 percent YoY. This category has seen persistent inflation on a long-term basis, with YoY price increases observed every month since May 2020.
  • Appliances: Prices were down 8 percent YoY (down 0.3 percent MoM) after hitting a record low in June 2023, where prices fell 8.3 percent YoY. Appliance prices online have now fallen YoY for ten consecutive months after having risen for 29 consecutive months starting in May 2020, peaking at 7.1 percent YoY in December 2020.
  • Electronics: Prices have continued to fall sharply in recent months, dropping 11.7 percent YoY (down 0.7 percent MoM) and 12.9 percent YoY in June 2023. Contrast this with a year ago, in July 2022, when prices were down 9.3 percent YoY. As a major discretionary category, electronics price movements significantly impact overall inflation online.

*Adobe’s DPI is modeled after the Consumer Price Index (CPI), published by the U.S. Bureau of Labor Statistics, and uses the Fisher Price Index to track online prices. The DPI analyzes one trillion visits to retail sites and more than 100 million SKUs across 18 product categories, including electronics, apparel, appliances, books, toys, computers, groceries, furniture and bedding, tools and home improvement, home and garden, pet products, jewelry, medical equipment and supplies, sporting goods, personal care products, flowers and related gifts, non-prescription drugs, and office supplies.

Photo courtesy Chewy