Bloomberg News reports that growth in the price of goods online in the United States decelerated in May for a second month, but the price of groceries was seen to escalate, the first time that it has happened the most in this category. Adobe Inc has tracked it.
There was a rise in online inflation by 2% in May compared to a year ago, which was down from 2.9% in April and in March record 3.6%, as released on Thursday by Adobe. Out of the 18 components, ten were tracked, including toys and electronics, and they showed a drop in the prices in the month, implying that consumers might be pulling back on discretionary spending.
The price of groceries surged 11.7% in May compared to one year earlier, which is the most on the record, and Adobe said it was 1.3% from April. This was the first month when this category surpassed even the apparel segment, which occupied the top slot for growth in price for over a year.
According to Patrick Brown, Adobe’s vice president of growth marketing and insights, despite the modest surge in online consumer spending, an uncertain economic scenario and escalating costs in the core segments like groceries are hampering the overall demand.
Inflation Eases Online
Bloomberg News reports that the online costs have been escalating for the last two years, but there are signals that the same may be peaking. Prices plunged 0.7% every month in May, which was dragged down by the goods like personal care products, books, and jewelry.
Consumers are being subjected to the highest inflation in 40 years, especially for the essential items like gas and food, leaving little to make the other purchases. But spending has held firm as the Americans dig into their savings and load up on their credit cards.
This data is released a day before the May consumer price index release, which is anticipated to show that prices have risen 0.7% since April and 8.2% in comparison to a year ago, which would be the second deceleration straight on an annual basis.
The Adobe index analyses as many as I trillion visits to the retail websites and over 100 million stock keeping units in as many as 18 varying product categories.
