Adobe Digital Price Index Shows Food Prices Drop For First Time Since 2020

Adobe released its latest data from the Adobe Digital Price Index (DPI), showing that online grocery prices fell 0.1% year-over-year (YoY) in October 2024, marking the first annual decline in grocery prices since January 2020. On a month-on-month (MoM) basis, grocery prices also decreased by 0.1% from September 2024. In all countries. the broader e-commerce space, total online sales fell for the 26th consecutive month, showing a 2.9% YoY decline, although they rose 0.1% MoM in October.

The drop in prices in the grocery category follows a period of consistent inflation in recent years. After rising 14.3% YoY in September 2022, online grocery prices have been steadily declining, with this October’s data marking a significant change in trend. This change comes as online shopping is increasingly integrated into consumers’ grocery shopping habits.

Key Insights from the Adobe Digital Price Index

Adobe’s DPI, which tracks online prices across 18 product categories, showed that 12 categories saw a YoY price drop in October 2024. These categories include:

• Clothes: Down 9.9% YoY (down 2.5% MoM)
• Toys: Down 4.4% YoY (flat mom)
• Computers: Down 3.8% YoY (up 2.9% MoM)
• Furniture/Beds: Down 2.9% YoY (up 0.8% MoM)
• Electronics: Down 2.7% YoY (up 0.9% MoM)

In contrast, six categories saw YoY price increases, with the electronics category marking its first YoY price increase since Adobe began tracking online prices in 2014, up 0.3% YoY (up 1.5% MoM). . Other categories with YoY price increases include personal care, office supplies, jewelry, over-the-counter drugs, and medical supplies/equipment.

Consumer Behavior and Spending Patterns

Changes in prices are in line with consumer spending patterns. Vivek Pandya, lead analyst at Adobe Digital Insights, noted the impact of early holiday promotions: “Consumers continue to see great deals online and take advantage of them, driving $82 billion in e-commerce spending by October 2024 , representing a growth of 6.7%. from last year. Early holiday promotions, including an industry-wide Prime Day event, contributed to healthy demand in October. “

Additional Views in Main Sections

• Toys: Prices have fallen YoY for 43 consecutive months, as of April 2021. This trend reflects long-term inflation in the category, with prices falling on average 5.5% YoY between 2015 and 2019.
• Clothes: October marked the 14th consecutive month of YoY decline in commodity prices, with prices down 9.9% YoY and 2.5% MoM. Previously, apparel prices had risen YoY for 13 consecutive months, rising in July 2023 by 11.9% YOY.

Photo: Envato