Adobe launches web portal for online inflation data
By the end of 2019, consumers had spent $574.9 billion online, per Adobe Analytics. Growth was expected to remain strong, as durable e-commerce demand was met with polished experiences online. Online shopping was expected to expand by more than $100 billion in 2020, per Adobe estimates. When the final tally was in, it was more than double that ($237.9 billion). The COVID-19 pandemic was a rare step change, making e-commerce a necessity for many and creating habits with staying power. It challenged the ability of businesses and policymakers to react, as trends and consumer behaviors shifted virtually overnight. As a result, the need for real-time on the digital economy has become heightened.
Adobe is announcing today a new web portal for online inflation data. Powered by the Adobe Digital Price Index (DPI), it provides a comprehensive view into what consumers pay for goods online. As a complement to the Consumer Price Index (CPI), the DPI will help deliver a more complete view of the overall cost-of-living picture, especially as more daily activities move online. Co-developed with leading economists Austan Goolsbee and Pete Klenow, Adobe’s analysis covers over 1 trillion visits to retail sites, 100 million SKUs, and 18 product categories. Leveraging the Fisher Price Index, is the only analysis that captures the final price paid for goods online, along with the quantities purchased.
New home for online inflation
Prior to the CPI release each month, Adobe will issue the DPI which covers 18 major categories in e-commerce: 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.
Price changes on a year-over-year and month-over-month basis can be accessed as data tables, as well as interactive charts that help visualize the trajectory changes over time. Adobe will provide historical data as far back as 2014, when the project first began. For years, Adobe provided this data directly to economist partners, academic institutions, and members of the press, working directly with organizations including the Federal Reserve, Census Bureau, International Monetary Fund, Commerce Department, and Bureau of Labor Statistics. The same data packets can now be widely accessed, for consumers, businesses, and policymakers to have a more real-time pulse on changes in the digital economy.
“In June 2020, the Adobe Digital Price Index observed online inflation for the first time in e-commerce, a trend that has now persisted for 21 consecutive months,” said Patrick Brown, vice president of growth marketing and insights, Adobe. “With online shopping expected to exceed $1 trillion in 2022, these real-time signals are becoming more vital for businesses and policymakers to understand changing consumer behaviors, and its impact on the offerings they provide.”