According to a recent Adobe Analytics report, online prices fell 1.9% in November, the largest drop since May 2020.
The Adobe Digital Price Index DPI, which analyzes 18 product categories, showed that November marked the third month in a row when prices fell on an annual basis. The November prices fell by 3.2% on a monthly basis, according to the data.
Fifteen of the 18 categories tracked by Adobe saw month-over-month price declines in November, although this was heavily driven by heavy discounting during Cyber Week, according to Adobe.
Black Friday and Cyber Monday shopping even marked new all time highs.
Computers saw the biggest drop in November, with prices slipping 18% compared to a year ago. Prices were down 5.1% since October.
The electronics category was not far behind. Prices fell 13.4% year-over-year and down 4.5% on a monthly basis. Both categories had the largest annual drop since Adobe began tracking prices in 2014.
Holiday discounts helped the toy and sporting goods categories get a boost, with prices falling 7.7% and 5.7% on an annual basis. Prices for both categories fell by 4.2% and 4.3% on a monthly basis.
Critical items, such as groceries, didn't see a price drop. The online prices for food went up 13.7% compared to a year ago.
This is the second month in a row when annual price increases for food online have come down from record highs. That was down from September and August when prices were up 14.3% and 14.1%.
The online spending during the month of November reached $116.5 billion, which is up 1.7% annually.
In November, the DPI isn't adjusted for inflation but the 1.9% drop in prices is a clear sign that consumer spending has been driven by net-new demand and not simply higher prices, according to Adobe.