Prices rose significantly for the items people buy for daily living, according to the US Bureau of Labor Statistics, which reported numbers on Thursday that showed the largest 12-month change for the period ending January 2022 since 1982.
Adobe was also out this week with its Digital Price Index that showed in January 2022, online prices increased 2.7% year-over-year and 1.1% compared to December 2021. It said January 2022 marked the 24th consecutive month where online prices rose for groceries, “making it the only category that has moved in lockstep with the Consumer Price Index, which captures prices consumers pay in physical stores.”
The Bureau of Labor Statistics (BLS) stated the all-items index rose 7.5% for the 12 months ending January and the all-items less food and energy index rose 6%. Major contributors to the latter increase include shelter (+4.4 percent) and used cars and trucks (+40.5 percent). However, the BLS said, “the increase is broad-based, with virtually all component indexes showing increases over the past 12 months.”
Note: The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services and are based on prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living.
Meanwhile Adobe said that in January 2022, 13 of the 18 categories tracked by its Adobe Digital Price Index saw year-over-year price increases, with apparel rising faster than any other category at 15.8%. It observed price drops in five categories: electronics, jewelry, books, toys and computers.
“In January, groceries were a standout category, with prices seeing their highest annual increase at 5.8% YoY (up 1.2% MoM), marking two years of online inflation for the category. Medical equipment/supplies continue to see strong YoY increases with 8.2% (-0.1% MoM), a record high YoY that coincides with a COVID-19 Omicron variant surge. Prices for electronics continue to drop (-3.4% YoY).”
The index is powered by Adobe Analytics, analyzing one trillion visits to retail sites and over 100 million SKUs across 18 product categories.
The bottom line for online sellers: prices for many goods have been rising both online and offline, according to reports from the government and Adobe.