Adobe has released its latest data from the Adobe Digital Price Index (DPI), revealing that online grocery prices fell 0.1% year-over-year (YoY) in October 2024, marking the first annual decrease in grocery prices since January 2020. On a month-over-month (MoM) basis, grocery prices also declined by 0.1% from September 2024. Across the broader e-commerce landscape, overall online prices have fallen for 26 consecutive months, showing a 2.9% YoY decrease, though they rose 0.1% MoM in October.
The price decline in the grocery category follows a period of consistent inflation in recent years. After peaking in September 2022 with a 14.3% YoY increase, online grocery prices have gradually leveled off, with this October’s data marking a notable change in trajectory. This shift comes as online shopping becomes more 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 experienced YoY price declines in October 2024. These categories include:
- Apparel: 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/Bedding: Down 2.9% YoY (up 0.8% MoM)
- Appliances: 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 rise 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, non-prescription drugs, and medical equipment/supplies.
Consumer Behavior and Spending Trends
The shift in prices has aligned with consumer spending patterns. Vivek Pandya, lead analyst at Adobe Digital Insights, noted the impact of early holiday promotions: “Consumers continue to see good bargains online and are taking advantage of them, driving $82 billion in e-commerce spend for October 2024, representing a 6.7% growth from the previous year. Early holiday promotions, including the industrywide Prime Day event, contributed to the healthy demand in October.”
Additional Observations in Key Categories
- Toys: Prices have fallen YoY for 43 consecutive months, starting in April 2021. This trend reflects long-term deflation in the category, with prices declining on average by 5.5% YoY between 2015 and 2019.
- Apparel: October marked the 14th consecutive month of YoY declines for apparel prices, with prices down 9.9% YoY and 2.5% MoM. Previously, apparel prices had risen YoY for 13 consecutive months, peaking in July 2023 at 11.9% YoY.
Image: Envato
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