The inflation rate for goods purchased online in the US slowed sharply last month, according to the Adobe Digital Price Index, though there was no letup in food prices which rose at the fastest pace on record.
Overall online prices rose just 0.3% in June from a year earlier, Adobe said on Tuesday. That’s down from 2% in May and a record 3.6% in February. Compared with a month earlier, prices fell 1% -- the third straight decline on that basis, the longest streak since the pandemic began in early 2020.
Eleven of the 18 components tracked by Adobe, including electronics, clothing and toys, saw prices fall last month, indicating consumers may be pulling back on discretionary spending while retailers offer discounts after piling up inventories. The drop in clothing prices was the sharpest since March 2021.
Online grocery prices bucked the trend, rising at the fastest annual pace on record in June. Higher food costs are hitting low-income households the hardest, because they spend a disproportionate amount of their budgets on groceries.
The war in Ukraine has pushed up the costs of basic foods like cereals, as well as fertilizers that are crucial for agriculture. The United Nations has warned of a surge in the number of people worldwide who are at risk of hunger.
This article was provided by Bloomberg News.