Online inflation in August was driven by groceries, where prices rose 14.1 per cent YoY (up 1.1 per cent MoM). Apparel prices have also contributed, rising 4.9 per cent YoY (up 8.7 per cent MoM) as seasonal promotions fade. Prices for apparel had fallen 1 per cent YoY in July, driven in part by back-to-school discounts and oversupply for certain retailers, as per Adobe DPI, powered by Adobe Analytics.

In August 2022, online prices in the US increased 0.4 per cent YoY and 2.1 per cent MoM, according to Adobe Digital Price Index. Consumer spending online in August reached $64.6 billion, an increase of 6.5 per cent YoY, attesting to the strength of the digital economy overall. In July 2022, e-commerce entered deflation after 25 months of rising prices.

“The modest uptick we see in online prices for August was driven in large part by rising food costs that show no signs of abating, just as seasonal discounts in a category like apparel phased out through the end of Summer,” said Patrick Brown, vice president of growth marketing and insights, Adobe. “Consumer demand for e-commerce also remains steady and will keep prices elevated.”

In August, consumers spent $64.6 billion online, up 6.5 per cent YoY. In July, $73.7 billion was spent online, up 20.9 per cent YoY on account of Prime Day discounts that drove record sales for the retail industry overall. For 2022 thus far, consumers have spent $590 billion online, growing 8.9 per cent YoY and showing resiliency in e-commerce demand.

In August, 12 of the 18 categories tracked by the DPI saw YoY price increases, with groceries rising the most. Fourteen of the 18 categories in the DPI saw price increases MoM, following a prior month (July) where Prime Day and oversupply produced more substantial discounting.

Fibre2Fashion News Desk (KD)