The report from Adobe compared prices from December of 2021 and 2022, and with all of that having been said and now out of the way it is important to note that 9 of the 18 different product categories saw a price decrease. Electronic products saw the biggest price dip of all, with them now being 12% cheaper than they were around a year ago.
Lower prices can make it easier for consumers to keep buying than might have been the case otherwise, since the effects of inflation are leaving them with very little spending money. Grocery prices are up by 13%, and consumers will obviously be prioritizing such necessities over luxuries like electronics. Hence, it makes sense that prices have fallen, since this may have been the only way to keep sales stable.
The decrease in prices has had a very positive effect. Ecommerce generated over $95.1 billion in December, which is a 5.8% increase year over year. Many were concerned that the holiday shopping season would see a muted response, but it seems that things are working relatively well with all things having been considered and taken into account.
Discounts over the holidays have likely impacted these figures, but in spite of the fact that this is the case they are still lower than last December when discounts were also in effect. Grocery prices are also increasing at a slower rate, with the 13.5% increase in December falling short of the record breaking 14.3% uptick in September.
This doesn’t automatically mean that things are calming down, but it does bode well for the future. Companies have to develop new strategies to deal with inflation and a cash strapped consumer base.
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by Zia Muhammad via Digital Information World
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