US online prices decline for a seventh month on annual basis
ONLINE prices in the US dropped 1.7 per cent in March from a year earlier, the seventh-straight decline and the sharpest retreat in four months.
More than half of the 18 categories tracked by Adobe Digital Price Index showed annual price declines, data released Monday (Apr 10) showed. Compared to the prior month, online prices were flat in March.
The figures underscore a more competitive selling environment for online merchants in recent months, with prices being adjusted accordingly. The data bolster a Federal Reserve model that suggests inflation persistence eased early this year.
The largest year-over-year price declines in March reflected steep drops in discretionary categories, suggesting consumers are being more cautious and spending more on services.
Prices slid 24.3 per cent from March 2022 for flowers and related gifts, 12.9 per cent for electronics and 6.6 per cent for toys. Online costs of both appliances and home and garden products fell 4.9 per cent.
Grocery prices remain a tough spot for household budgets. While price gains have moderated over the past six months, they were up 10.3 per cent in March from a year ago. Online grocery prices track the food category in the government’s consumer price index.
The Adobe gauge analyses a trillion visits to retail sites and more than 100 million items across 18 product categories to track price changes. More than 85 per cent of the top 100 US Internet retailers are tracked by Adobe. BLOOMBERG
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