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May 15, 2023 : According to the latest report from Adobe, online grocery prices experienced a significant increase of 9.3% in April compared to the previous year, despite price declines in most other categories tracked by the Adobe Digital Price Index. This indicates the persistent inflation within the online grocery sector, although demand for the convenience of online grocery shopping remains strong.
While the rate of price increases has slowed over the past seven months, groceries still see the highest price hikes among all the categories monitored by Adobe. The report suggests that consumers increasingly turn to online platforms for grocery purchases, aligning with the trends observed in the Consumer Price Index.
In March, Adobe reported that the online grocery category witnessed the largest growth in online sales in 2022, with spending rising by 10.8% to $86.8 billion.
However, the overall online prices in April were down 1.8% compared to the same period in 2022. Significant drops led to this decline in categories such as electronics, where prices decreased by 11.6% annually, and computers, which saw a 15.4% decline. Eleven out of the 18 product categories tracked by Adobe experienced price drops on a year-over-year basis.
Toy prices also experienced a decline, falling by 5.9% year-over-year in April and 0.2% compared to the previous month. This can be attributed to the challenges faced by toy manufacturers like Mattel and Hasbro, who struggled to clear excess inventory, leading retailers to offer discounts and delay reorders.
The appliance category witnessed a record year-over-year decline of 7.1% in April, marking the seventh consecutive month of falling prices. Similarly, sporting goods prices declined by 6.4% annually, extending the trend of price decreases observed for 12 consecutive months.
Among the 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.
Based on a thorough analysis of 1 trillion retail site visits and over 100 million stock-keeping units (SKUs) across 18 product categories, the Adobe Digital Price Index provides valuable insights into online pricing trends.
