Prices for online goods decreased in the US
2022.12.08 09:01
Prices for online goods decreased in the US
Budrigannews.com – In November, the fastest annual decline since the COVID-19 pandemic and a sign that one important aspect of overall inflation continues to slow, prices for online goods in the United States fell by nearly 2%.
The Adobe (NASDAQ:) decline from month to month A measure of online shopping called the Digital Price Index, which is meant to be like the basket of goods in the government’s Consumer Price Index, was even faster at 3.2%.
The drop was also extensive, with monthly price drops in 15 out of 18 product categories. Groceries were a notable exception, albeit at a slower rate than in previous months.
Prices for “non-promotional” items like personal care products also fell as a result of aggressive discounting at the beginning of the Christmas holiday shopping season.
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The software and analytics company’s vice president, Patrick Brown, stated in a statement, “While the November drop in online prices was driven by major discounting on days including Cyber Monday and Black Friday, we also see signs of overall e-commerce inflation cooling.”
During Cyber Week, which ran from Thanksgiving to Cyber Monday, consumers in the United States spent a total of $35.27 billion online. At a time when U.S. inflation is higher than 7%, that is a meager increase of 4% over the previous year.
The Adobe list, utilizing strategies created to some extent by approaching Chicago Central bank President Austan Goolsbee, alluded to the approaching expansion shock when it started ascending in mid-2020. Prior to that point, online prices had long been a factor in overall inflation.
The Fed’s hope for a new trend toward disinflation as goods prices either stop rising or even fall may be confirmed by the latest turn lower.
Last week, Fed Chair Jerome Powell stated, “If current trends continue, goods prices should begin to exert downward pressure on overall inflation in the coming months.”
The Fed’s inflation issue cannot be resolved by that alone. Prices for services have increased as goods inflation has begun to slow.
When the Consumer Price Index for November is released on December 13, the day that the Federal Reserve’s next policy meeting begins, the Fed will receive fresh inflation data. After four consecutive rate increases of three quarters of a point, Fed officials are expected to slow down the rate increases at that meeting to half a point.
