New York (CNN Business)The world of online shopping will suffer the effects ofinflationfor a long time until Covid-19 turns everything upside down. I didn't receive it.
That streak is finally over. Online prices fell 1% year-on-year in July, ending nearly two years of inflation, according to a report Adobe released on Tuesday.
According to Adobe, online prices fell 2% in July, and the change is even more pronounced month-over-month.
The findings portend an inflationary crisis, pressure on consumers, and prices that heightened recession fears. It indicates the potential for pressure relief.
Of course, it could be quite some time before inflation returns to normal levels, and Adobe says online grocery prices continue to skyrocket.
Inflation remains too high across the US economy.
Declining inflation is a positive development, but the factors behind changes in online pricing may not be good news. Adobe said it was a combination of "wobbled consumer confidence and receding spending" combined with oversupply by some retailers.
Online deflation is due to a 9.3% year-over-year drop in electronics prices, says Adobe.
Adobe Beyond electronics, online prices for toys plunged 8.2% in July, the biggest since late 2019, according to Adobe.
According to Adobe, online apparel prices Prices rose for the 14th straight month through June, falling 0.1% year-on-year.This shift in deflation will continue into July as online clothing prices fell 1% year-on-year and 6.3% month-on-month.
Despite the return of deflation across online shopping, Adobe says online prices are moving in the wrong direction in several key categories.
Online grocery prices surged 13.4% year-on-year in July, setting a new record, the report found, up from 10.3% in April, That's an acceleration from the all-time high of 11.7% in May.
Similarly, prices for online pet products jumped 12.6% year-over-year, breaking a record and marking the 27th straight month, according to Adobe.