The cost of online groceries continues to rise, hitting another record high of 14.1% year-on-year. That’s according to the latest Adobe Digital Price Index (DPI) inflation data.
Inflation drives up online grocery prices by 14%
In August 2022, food prices recorded their highest annual increase, while online prices increased by 0.4% yoy and 2.1% mom.
Consumer spending online rising
According to the report, online inflation in August was fueled by groceries. Meanwhile, online consumer spending in the same month hit $64.6 billion, up 6.5% YoY, confirming the overall strength of the digital economy.
An increase in online spending despite rising prices underscores the value of small businesses selling products online. In addition, categories such as groceries and pet products that are not traditionally sold online are increasingly sought after by online shoppers.
As Patrick Brown, vice president of growth marketing and insights at Adobe, said, “The modest increase in online prices in August is due in large part to rising grocery costs that show no sign of abating, as well as seasonal discounts in one category such as Clothing to be phased out by the end of summer.
“Consumer demand for e-commerce also remains resilient and will keep prices high, particularly for growing categories like groceries, pet products and other staples,” Brown added.
Inflation in the digital economy
Adobe’s Digital Price Index is a comprehensive measure of inflation in the digital economy. In August, 12 of the 18 categories tracked by the DPI saw price increases compared to the previous year. Of the 12 categories that saw price increases, groceries saw the biggest increase. It was followed by apparel with a 4.9% year-on-year price increase and personal care products with a 2.7% increase.
In contrast, prices for electronics fell 10%, as did computers, which saw prices fall 12.6% year-on-year.
Adobe’s digital price index provides small businesses with valuable insight into consumer spending patterns. It also emphasizes the importance of selling to a digital audience, including selling groceries.
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