Online Grocery Prices Continue To Climb, Even As Overall Inflation Eases

Online grocery prices were 9.3% higher in April than they were a year ago, despite price declines in most of the categories tracked by the Adobe
ADBE
Digital Price Index. The April numbers were released today by Adobe.

Today’s report shows once again how persistent inflation is in the online grocery category. Demand for the convenience of online grocery shopping remains strong, despite rising prices.

While the pace of price increases in the online grocery category has slowed over the past seven months, groceries continue to see the steepest price hikes of the categories tracked by Adobe.

“Consumers are increasingly buying more of their groceries online, and this category has generally moved in lock step with the Consumer Price Index,” Adobe reported.

Adobe reported in March that the grocery category saw the biggest jump in online sales in 2022, with spending rising 10.8%, to $86.8 billion.

Overall, online prices were down 1.8% in April compared to April, 2022, led by double-digit drops in some of the largest online categories, including electronics.

E-commerce inflation easing

April was the eighth consecutive month that overall prices declined, on a year-over-year comparison, according to Adobe. Compared to March, prices were down 0.7% month-over-month.

Eleven of the 18 product categories tracked by Adobe in the Digital Price Index had price drops on a year-over-year comparison.

Electronics, computers, flowers and related gifts, appliances, sporting goods, toys, books, home and garden, furniture and bedding, office supplies, and jewelry had year-over-year declines.

Electronics prices were down 11.6% annually, and computers were down 15.4% annually.

Toy troubles

Online toy prices were down 5.9% year-over-year in April, and down 0.2% compared to the previous month.

The decline in toy prices reflects the struggles toy manufacturers like Mattel and Hasbro
HAS
are having clearing out excess inventory this year. In earnings calls last month, Hasbro and Mattel both said retailers have been discounting traditional toys, and delaying reorders, due to excess inventory.

Appliance prices were down 7.1% year-over-year in April, a record year-over-year decline for the category, the steepest since Adobe began tracking online prices in 2014.

Appliance prices have fallen year-over-year for seven consecutive months, after having risen for 29 consecutive months, starting in May, 2020, according to Adobe.

Appliance prices were down 2.1% month-over-month, compared to March.

Sporting goods down 6.4%

The sporting goods category also saw online prices drop in April, making it the 12th consecutive month when online prices for sporting goods declined year-over-year. Prices were down 6.4% on an annual basis.

Like appliances, sporting goods had enjoyed more than two years of price increases during the pandemic. On a year-over-year comparison, prices in the category rose for 28 consecutive months, starting in January, 2020.

Along with groceries, the other categories that saw year-over-year price increases in April were personal care, pet products, non-prescription drugs, tools and home improvement, medical equipment and supplies, and apparel.

The Adobe Digital Price Index is based on analysis of 1 trillion visits to retail sites, and over 100 million SKUs in 18 product categories.