Online grocery prices were 1.2% cheaper in February 2024, when compared with February 2023, and pet products were 0.5% cheaper than they were a year ago. This is the first year-over-year price decrease in essential items since October 2021. That’s according to new data from Adobe Analytics, which is based on actual online transactions rather than estimates or survey data.
Online price is often a leading indicator of inflation across the retail landscape, so the deflation in the online prices of essential items is a positive signal for consumers, who’ve faced a sustained period of rising inflation and increased living costs.
The data from Adobe also reveals that a combination of the leap year and increased use of Buy Now Pay Later services saw UK online spending reach £8.8bn in February 2024, representing a 5.0% increase on the £8.4bn spent in February 2023. Despite the positive uplift in overall spending, of the additional £400m spent in February 2024, compared to February 2023, £285m was spent on the leap day, February 29th.
Consumers financed £1.38bn worth of purchases through Buy Now Pay Later (BNPL) services in February 2024. This represents an increase of £120m on the amount spent using BNPL in February 2023 (£1.26bn), propping-up this month’s spending figures and showing an increasing reliance on BNPL to keep spending levels steady.
Vivek Pandya, lead analyst, Adobe Digital Insights, commented: “While our data shows a 5% uplift in online spend compared with last year, much of this growth can be attributed to the additional shopping day on February 29th and an increase in the use of Buy Now Pay Later services. There are, however, some positive signs for shoppers, with Adobe Analytics recording the first year-over-year decrease in prices for grocery and pet products since October 2021.”
