Media Alert: Adobe Digital Price Index: Online Inflation Hits Record High at 3.6%

Adobe (Nasdaq:ADBE) today announced the latest online inflation data from the Adobe Digital Price Index (DPI). In February 2022, online prices increased 3.6%year-over-year (YoY) and 0.1% month-over-month (MoM). This is a new record high, after the previous record in November 2021 when prices rose 3.5% YoY. It marks the 21st consecutive month of YoY online inflation. In February, tools and home improvement were a standout category, with prices seeing their highest annual increase at 7.8% YoY (up 0.8% MoM). Apparel increased 16.7% YoY (up 0.3% MoM), more than any other category. In groceries, prices increased 7.6% YoY (up 1.9% MoM), a record high for the category.

The DPI provides the most comprehensive view into how much consumers pay for goods online. Powered by Adobe Analytics, it analyzes one trillion visits to retail sites and over 100 million SKUs across 18 product categories: electronics, apparel, appliances, books, toys, computers, groceries, furniture/bedding, tools/home improvement, home/garden, pet products, jewelry, medical equipment/supplies, sporting goods, personal care products, flowers/related gifts, non-prescription drugs and office supplies.

In February, 13 of the 18 categories tracked by the DPI saw YoY price increases, with apparel rising the most. Price drops were observed in five categories: electronics, jewelry, books, toys and computers.

On a MoM basis, 13 of the 18 categories saw February price increases, with price drops observed in categories including electronics, jewelry, appliances, computers and medical equipment/supplies.

The DPI is modeled after the Consumer Price Index (CPI), published by the U.S. Bureau of Labor Statistics, and uses the Fisher Price Index to track online prices. The Fisher Price Index uses quantities of matched products purchased in the current period (month) and a previous period (previous month) to calculate the price changes by category. Adobe’s analysis is weighted by the real quantities of the products purchased in the two adjacent months.

Adobe uses a combination of Adobe Sensei, Adobe’s AI and machine learning framework, and manual effort to segment the products into the categories defined by the CPI manual. The methodology was first developed alongside renowned economists Austan Goolsbee and Pete Klenow.

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