Inflation has become a hot button issue as of late because of the fact that this is the sort of thing that could potentially end up making basic goods too expensive for the average consumer. We have been seeing some of the worst inflation of the decade these past couple of years, but in spite of the fact that this is the case Adobe's 18 different product categories seem to be experiencing a deflation in prices for the first time in two years.
This data suggests that the average price of goods across these eighteen categories have gone down by 1% year over year. With all of that having been said and now out of the way, it is important to note that month over month price changes have shown a decrease of about 2%, and that might help consumers get a lot more bang for their buck although consumer spending has also gone down due to the wider perception that inflation is still running rampant.
Consumers spent around $74.1 billion in June on ecommerce, but this has gone down month over month to approximately $73.7 billion in July. This is a further increase from the $78.8 billion spent by consumers on ecommerce in the month of May, although if we look at things on a year over year basis this indicates that consumer spending has increased by a healthy 9.2% as compared to 2021.
This marks the first time in 25 months that prices have seen any kind of deflation with all things having been considered and taken into account. The largest category of products in the ecommerce sector, electronics, has seen a 9.3% decrease in average prices year over year. Since around 18.9% of consumers make purchases in this niche, companies operating within this sector might see an increase in consumption.
Apparel prices also fell by a modest 1%, and prices for toys also dropped by as much as 8.2%. However, food prices are still quite high, with groceries in 2022 costing 13.4% more than they did in 2021 so consumers might not have enough money to spend on luxuries.
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This data suggests that the average price of goods across these eighteen categories have gone down by 1% year over year. With all of that having been said and now out of the way, it is important to note that month over month price changes have shown a decrease of about 2%, and that might help consumers get a lot more bang for their buck although consumer spending has also gone down due to the wider perception that inflation is still running rampant.
Consumers spent around $74.1 billion in June on ecommerce, but this has gone down month over month to approximately $73.7 billion in July. This is a further increase from the $78.8 billion spent by consumers on ecommerce in the month of May, although if we look at things on a year over year basis this indicates that consumer spending has increased by a healthy 9.2% as compared to 2021.
This marks the first time in 25 months that prices have seen any kind of deflation with all things having been considered and taken into account. The largest category of products in the ecommerce sector, electronics, has seen a 9.3% decrease in average prices year over year. Since around 18.9% of consumers make purchases in this niche, companies operating within this sector might see an increase in consumption.
Apparel prices also fell by a modest 1%, and prices for toys also dropped by as much as 8.2%. However, food prices are still quite high, with groceries in 2022 costing 13.4% more than they did in 2021 so consumers might not have enough money to spend on luxuries.
