According to the latest data from Adobe Digital Price Index (DPI), online prices in March 2023 fell 1.7% year-over-year (YoY), marking the seventh consecutive month of YoY price decreases. Over half of the categories tracked by Adobe saw falling prices on an annual basis. On a monthly basis, online prices in March remained flat (up 0.03%).
The significant YoY price decline in March was primarily driven by steep drops in discretionary categories such as electronics (down 12.9% YoY, down 1.3% MoM) and toys (down 6.6% YoY, down 1.2% MoM). Prices also fell YoY for home goods. Appliances dropped by 4.9% YoY (up 0.8% MoM), home/garden products fell 4.9% YoY (down 0.3% MoM), and the furniture/bedding category fell 0.9% YoY (down 0.3% MoM).
Although certain categories faced persistent inflation, YoY price increases have slowed in recent months. Grocery prices increased by 10.3% YoY (up 0.4% MoM) in March, down from February 2023’s 11.4% YoY increase. This marks the sixth consecutive month where YoY price increases for groceries have decelerated. In the personal care category, prices rose by 4.4% YoY (down 1.5% MoM), compared to February 2023 when personal care prices increased by 6.1% YoY.
Adobe’s DPI offers a comprehensive view of consumer spending on goods online, complementing the Bureau of Labor Statistics’ Consumer Price Index, which captures offline prices. Powered by Adobe Analytics, the DPI analyzes one trillion visits to retail sites and over 100 million SKUs across 18 product categories.
In March, 10 of the DPI’s 18 categories saw YoY price decreases, with the flowers/related gifts category experiencing the most significant decline at 24.3% YoY. Eight categories witnessed YoY price increases, including personal care, office supplies, pet products, groceries, non-prescription drugs, tools/home improvement, medical equipment/supplies, and apparel.
The DPI data highlights evolving consumer spending patterns and pricing trends in the online retail space. It also provides valuable information for retailers to better understand consumer behavior and adjust their strategies accordingly.
This article, “Adobe Digital Price Index: Online Prices Fall 1.7% In March” was first published on Small Business Trends
Adobe DPI reveals a 1.7% YoY decrease in online prices for March 2023, with slowing grocery price increases and continuing declines in electronics and toys.Read MoreSmall Business NewsSmall Business Trends