Despite ongoing inflationary pressures, online prices saw a 1.7% decrease in March compared to the previous year, as revealed by the Adobe Digital Price Index published by Adobe Analytics. This marks the seventh consecutive month of year-over-year price reductions in more than half of the categories monitored by Adobe.
Categories such as groceries, clothing, and personal care items experienced price increases of 10.3%, 6.6%, and 4.4%, respectively. On the other hand, the report indicated that electronics and furniture/bedding product prices fell by 12.9% and 0.9%, respectively.
Other categories witnessing price declines included flowers and gifts (24.3%), appliances (4.9%), toys (6.6%), and home and garden products (4.9%), as per the Adobe report.
Last year’s record inflation continues to affect both retailers and consumers this year, prompting some shoppers to alter their habits by opting for alternative brands and seeking discounts, according to a survey from Blackhawk Network.
Inflation perception might contribute to the change in consumer spending patterns. A survey by Dunnhumby Consumer Trends Tracker discovered that consumers believed inflation was at 24.3% during October and November 2022, significantly higher than the actual 12% rate. The same survey revealed that respondents thought grocery stores had a profitability rate of 35.2%, much greater than the real figure of 2.5% at that time.
Although the Consumer Price Index indicates a cooling inflation rate, consumers continue to feel the effects. The Adobe Price Index reports a modest 0.4% month-over-month increase in grocery prices for March, but the rate of grocery price increases has slowed down since their September peak of 14.3% year over year.