In a positive sign for inflation-weary consumers, online prices dropped in December as retailers resorted to deep discounts to lure shoppers, according to a Tuesday report from Adobe Analytics.
Adobe said e-commerce prices were 1.6% lower than the year before, marking the fourth consecutive month of annual price declines.
For many years, online prices did nothing but fall as e-commerce was immune to inflationary pressures. That changed following the start of the Covid-19 pandemic as strong demand and supply chain trouble lifted online prices.
[Demand may finally be shrinking, but that’s not necessarily good news. We would have been better off with supply-side policies — especially on energy — that incentivized increased production rather than Fed policies that punished demand. — Ed]
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