NEWSFLASH: Digital Inflation Slows As Economy-Wide Inflation Soars
Adobe Analytics recently announced the latest round of digital inflation data from the Adobe Digital Price Index (DPI), finding digital inflation continued to slow, falling to 2.0% in May, while CPI, the economy-wide measure of inflation, hit a new four-decade high.
Additionally, a new report from the Progressive Policy Institute (PPI)’s Innovation Frontier Project “finds inflation in the digital sector is still low, despite rapid price increases in much of the rest of the economy. Moreover, the deflationary influence of the digital economy has not been fully captured in official measures of inflation.”
Since January 2021, digital inflation has consistently remained lower than the Consumer Price Index (CPI).
Prices of goods and services within the technology sector remain lower than other goods and services. For example, electronics prices were down 6.5% YoY (down 1.4% MoM), the largest drop in this price category since May 2020, whereas grocery prices continue to soar, up 11.7% YoY (up 1.3% MoM), setting a new record.