Adobe: Online prices were up only 2% in May
The Digital Price Index doesn't include airline tickets whose cost was up 30% last month.
Online prices were up only 2% last month compared to a year earlier, according to The Adobe Digital Price Index. That’s a far better showing than the rest of the U.S. where the inflation rate hit 8.2% in May.
May’s online prices were down 0.7% from April and 1.6% from March’s record 3.6% increase. The DPI tracks prices across 18 categories, 10 of which saw decreases last month.
Less expensive. Electronics and computers had the biggest price decreases. Electronics were down 6.5% YoY and 1.4% from the month before. That’s a greater decrease than April (-5.2% YoY), and a record YoY low for the category over the last 24 months. Computer prices dropped 7.05% from the same period last year.
More expensive. Groceries and apparel had the biggest increases in the most frequently purchased categories. The price of groceries was up 11.7% YoY, the biggest increase of any category and 1.7 percentage points higher than the increase reported by the U.S. Consumer Price Index. Clothes prices were up 9% compared to a year earlier.
Spending rises. Consumers spent $78.8 billion online in May, up 7.1% from the year before and $1 billion more than in April. In 2022 so far, consumers have spent a total of $377.6 billion online, up 8.9% for the same period in 2021.
Why we care. The Digital Price Index’s selection of categories is interesting for a couple of reasons. First – and the reason its inflation rate is so low – you can’t buy gas online (current average price of regular is $5.009/gallon, up $2 from a year before). Second, it doesn’t include travel – which Adobe does track. In a separate report, the company said airline ticket prices were up 30% in May, compared to a year earlier, and an amazing 47% since the start of the year.
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