E-Commerce Inflation Returned In August, After A One-Month Break

Online inflation returned in August, after taking a brief break in July, according to the latest AdobeADBE
Digital Price index. Prices were up 0.4 % in August, compared to August, 2021, after dropping 1.0% on an annual basis in July, Adobe reported today.

Record price increases in grocery, along with upticks in prices for apparel and personal care items, put e-commerce back in the inflationary zone, despite continued steep drops in the largest online category, electronics.

Before July, Adobe had recorded 25 consecutive months of e-commerce inflation, as the pandemic shift to online shopping drove up prices.

Consumer demand for e-commerce remains steady, and is likely to “keep prices elevated, especially for growing categories such as groceries, pet products, and other consumer staples,” Patrick Brown, vice president of growth marketing and insights at Adobe, said in releasing the August report.

Consumers spent $64.6 billion online in August, up 6.5% annually, showing the ongoing strength of the digital economy, the report stated.

Other highlights from the report were:

• Another record jump for grocery – Grocery prices rose by 14.1% year-over-year, a new record on an annual basis. The increase broke previous records set in July (13.4%); June (12.4%) and May (11.7%). Online grocery prices have increased for 31 consecutive months.
• Apparel prices were up 4.9% year-over-year after falling in June and July due to due to heavy discounting and back-to-school promotions.
• Personal care products were up 2.7% year-over-year, the highest increase since March, 2021.
• Electronics prices declined 10% year-over-year. Prices in this category have declined consistently since December 2021.
• Twelve of the 18 product categories measured by the report saw year-over-year price increases in August.
• Six categories – electronics, jewelry, books, toys, computers, and sporting goods – declined year-over-year in August.

The Adobe Digital Price Index is based on Adobe Analytics data from over one trillion visits to retail sites spanning over 100 million SKUs across 18 product categories.