: Online prices are finally declining after 2 years of increases — but only for these select items

by | Aug 19, 2022 | Stock Market

Shopping online is finally getting cheaper after more than two years of steady price increases with the U.S. in the grip of record-high inflation. But the catch is that you have to be shopping for electronics or clothes to see the price cuts. E-commerce entered deflation in July, meaning that prices trended downward for the first time in 25 months, according to the latest Adobe Digital Price Index. Online prices decreased 1% compared to last year, after a 0.3% year-over-year increase in June and a 2% rise in May. 

The decrease in online prices was largely due to prices dipping on electronics, toys and apparel. The largest category in online shopping, electronics — which made up almost one-fifth of online spending in 2021 — saw a 9.3% decrease in prices in July compared to last year. That followed a 7.3% year-over-year decrease in June. Prices for apparel also went down in July, with a 1% decrease compared to last year.  Electronics are becoming less expensive online for a variety of reasons, said Patrick Brown, vice president of growth marketing and insights at Adobe, in the report.  “Wavering consumer confidence and a pullback in spending, coupled with oversupply for some retailers, is driving prices down in major online categories like electronics and apparel,” Brown said. He said the falling prices would provide …

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