Online prices fell at the fastest rate in 36 months in May, according to Adobe’s Digital Price Index. Prices were down 2.3% year over year, and 1.2% compared with April 2023.
Adobe produced the report based on 100 million SKUs across 18 retail categories including groceries, personal care, and appliances.
11 of the 18 categories Adobe monitored showed year-over-year price declines in May. They were driven by decreases in discretionary categories, Adobe said. The largest year-over-year price decrease was for the flower and gift category. Prices declined 27.8%. The category continued the trend from April, when it also showed the largest decrease.
Computers and electronics also decreased significantly, down 16.45% and 12.04%, respectively, year over year.
Appliance prices dropped 7.9% year over year, and 2.4% month over month. This was the largest drop in the category pricing since Adobe first began tracking in 2014. Appliance prices decreased for the eighth month in a row, Adobe found.
Home and garden prices also decreased 6.3% over last May, when prices were up 2.5% over May 2021, per Adobe.
Grocery prices increased again
Online grocery prices rose 8.2% year over year and 0.3% month over month in May, Adobe found. Though prices keep going up, Adobe noted that the rate of increase has slowed for eight consecutive months. Online grocery prices were up 9.3% year over year in April, 10.3% in March, and 11.4% in February. Growth peaked in September 2022 at 14.3% year over year.
Ecommerce splits from other retail
Adobe says it uses the same general methodology that the Bureau of Labor Statistics uses to track prices in the Consumer Price Index (CPI). In May 2023, online prices fell 23% while the CPI grew 4%. That’s on track with recent months, with Adobe and BLS findings diverging. In April 2023, ecommerce prices declined 1.8% year over year and the CPI was 4.9%. In March 2023, ecommerce prices decreased 1.7% per Adobe, while the CPI grew 5%
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