Online prices declined for the first time since 2020 in July as pandemic demand begins to cool. Prices fell by 1% year-over-year and by 2% on a month-over-month basis, according to a report released by Adobe and as reported by CNN. Before the pandemic, online prices had been declining consistently for years.
“Wavering consumer confidence and a pullback in spending, coupled with oversupply for some retailers, is driving prices down in major online categories like electronics and apparel,” said Patrick Brown, vice president of growth marketing and insights at Adobe. “It provides a bit of relief for consumers, as the cost of food continues to rise both online and in stores.”
According to Adobe, price drops were seen across 14 categories, including: electronics, personal care products, office supplies, jewelry, books, furniture/bedding, toys, home/garden, appliances, flowers/related gifts, computers, sporting goods, medical equipment/supplies and apparel.
CNN pointed out that electronics prices — the area where consumers typically spend the most — dropped 9.3% year-over-year, and online prices for toys fell by 8.2%, the biggest plunge since 2019.
Online prices for apparel rose for 14 consecutive months before dropping by 0.1%. Walmart announced that apparel is one area where the company is being forced to mark down prices, CNN reported.
However, some categories saw significant growth. Prices for online groceries rose 13.4% year-over-year in July, according to Adobe, and pet products purchased online jumped in price by 12.6%.
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Adobe noted that it may take some time before inflation returns to normal levels.
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