From greedflation to deflation, our latest Power to the Pricing People takes a look at whether supermarkets are guilty of profiteering and the goods going against inflation trends.
Accusations of greedflation have been levelled all over the grocery sector recently, with many consumers concluding that increasing food and drink inflation has been driven by profiteering. However, the UK’s competition watchdog, the Competition and Markets Authority (CMA), has declared there’s no evidence to point to greedflation by supermarkets and instead the main driver of grocery price increases has been global factors such as energy prices and supply chain volatility. It did, however, say it would take a closer look into whether weak competition was a factor in high prices.
Read more about the factors that have been driving up grocery prices.
Bucking the inflation trend, Adobe’s Digital Price Index has revealed online prices have decreased for the eighth consecutive month, sitting at 1.8% lower than the previous year. Computers saw a significant year-on-year decrease at 15.4%, followed by electronics (11.6%), sporting goods (6.4%), toys (5.9%) and home and garden items (5.6%). Appliances dropped 7.1%, the largest year-on-year drop for the category since Adobe began tracking online prices in 2014. Despite fluctuating prices, online shopping is expected to continue growing, with Forrester research projecting U.S. e-commerce sales will reach $1.6 trillion in by 2027.
Read more about the pricing trends we can expect to see for these goods in the coming months.
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