Numbers Game: Online prices were down in March compared to a year ago

Wednesday’s consumer price index report showed inflation continuing to slow down, and that’s translating in the e-commerce world.

Online prices in March dropped 1.7% YoY with 10 of 18 categories tracked by Adobe seeing falling prices on a yearly basis, according to the company’s latest Digital Price Index. Prices remained flat compared to February.

• Much of the decline, according to Adobe, was driven by drops in discretionary categories like electronics (12.9%), toys (6.6%), and appliances (4.9%).
• On the other hand, grocery prices were still up 10.3% YoY, only slightly down from February’s 11.4% bump. Although inflation remains high in this category, Adobe noted that it’s the sixth consecutive month inflation has dropped.
• Also, Adobe reported last month that inflation isn’t preventing customers from online grocery shopping. Consumers spent $73.7 billion in the digital grocery market during the first year of the pandemic in 2020 and are expected to buy $85 billion in online groceries this year. Groceries now also account for 8.9% of the total e-commerce market.

Eight categories saw YoY increase including personal care, office supplies, pet products, non-prescription drugs, groceries, home improvement, medical care/supplies, and apparel.