Media Alert: Adobe Data Shows Prices for Consumer Goods Increase Post Holiday Season
February 13 2017 - 8:00AM
Business Wire
Inflation on the Rise in the U.S. Following a Year of
Deflation
Adobe (Nasdaq:ADBE) today announced the release of its Digital
Price Index (DPI) for January. Adobe’s analysis of U.S. consumer
spending unveiled higher than expected inflation for two
consecutive months. Prices typically drop in November due to
holiday discounts before rebounding. However, prices in December
2016 saw a bigger jump compared to 2015 (0.6 percent versus zero
percent) and surpassed pre-holiday levels. This trend continued
into January 2017, with prices increasing .05 percent, which
resulted in 1.2 percent cumulative inflation for the last three
months. This is greater than the 0.9 percent observed during the
same period a year ago.
Inflation in December 2016 was especially notable for
televisions (7.8 percent), appliances (6.0 percent) and tablets
(5.4 percent). Despite the month-over-month (MoM) increases, almost
all categories in the DPI showed cumulative deflation throughout
2016, especially for televisions (-19.8 percent) and tablets (-16.1
percent).
“Data indicates that inflation may be on the rise following the
Fed’s rate hike in December,” said Mickey Mericle, vice president,
Marketing and Customer Insights at Adobe. “We’ll continue to keep a
close eye on price fluctuations as an indicator for the state of
the U.S. economy. We’re already collaborating with the UK’s Office
for National Statistics (ONS), recently presented our findings to
the Federal Reserve and are meeting with several governments in
Latin America to discuss the DPI.”
In December and January, the DPI began tracking five new
categories, including alcoholic beverages, auto parts, tools and
home improvement products, personal care products, and pet
products. Alcohol beverages saw inflation driven by prices for
beer. Interestingly, there’s a difference between online and
offline alcohol sales. The offline findings of the government’s
Consumer Price Index (CPI) show alcohol sales are comprised of 40
percent beer, 40 percent wine and 20 percent spirits. The DPI
reports wine as the strongest category suggesting wine retailers
have maximized alcohol sales online more than sellers of beer and
other spirits.
About the DPI
Adobe leverages machine learning in Adobe Marketing Cloud to
surface economic insights from billions of data points. By tracking
seven dollars and fifty cents out of every ten dollars spent online
with the top 500 U.S. retailers* and over six dollars out of every
ten dollars spent online with the top 100 European retailers,** the
DPI is able to analyze billions of digital transactions. Adobe is
the first company to conduct a digital-centric analysis based on
real-time access to price-paid data and actual quantities sold.
Unlike other models, Adobe Digital Insights leverages the Fisher
Ideal Price method, which uses actual quantities purchased to
measure inflation and is recognized by leading economists as the
gold standard for the calculation of inflation. To produce the
January DPI, Adobe analyzed 15 billion U.S. website visits, one
billion U.K. website visits and online transactions for over 2.2
million products sold online.
By year’s end, Adobe plans to fill out the DPI with enough
categories to get a full picture into the state of the U.S.
economy. The full Adobe Digital Economy Project report can be found
at
http://www.slideshare.net/adobe/adobe-digital-economy-project-january-2017.
About Adobe
Adobe is changing the world through digital experiences. For
more information, visit www.adobe.com.
*Source: Internet Retailer’s 2016 Top 500 eGuide**
Source: Internet Retailer’s 2016 Europe 500
© 2017 Adobe Systems Incorporated. All rights reserved. Adobe
and the Adobe logo are either registered trademarks or trademarks
of Adobe Systems Incorporated in the United States and/or other
countries. All other trademarks are the property of their
respective owners.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170213005165/en/
AdobeMelissa Chanslor, 415-832-5489chanslor@adobe.comStefan
Offermann, 408-536-4023sofferma@adobe.com
Adobe (NASDAQ:ADBE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Adobe (NASDAQ:ADBE)
Historical Stock Chart
From Apr 2023 to Apr 2024