Online Grocery Prices Surpass Consumer Inflation

As many Americans were under stay-at-home orders during the height of the pandemic, the demand for food and grocery e-commerce skyrocketed. Online grocery prices have significantly gone up in the first half of 2020, and even surpassed the latest consumer inflation numbers that were released by the Department of Labour.

According to government data released on Tuesday, overall grocery costs have risen 5.6% on a yearly basis – the biggest spike since 2011. However, according to a recent survey conducted by Brick Meets Click, online grocery sales in the US have gone up by 9% in June on a month-over-month basis, and have amassed to $7.2 billion. The survey also found that the sudden increase corresponds to American’s increasing worry about the rapid spread of the coronavirus, which has thus forced many to order their necessities online from the comfort of their home.

In the meantime, Adobe Inc. found that e-commerce spending was $77 billion more than anticipated during the first half of the year, because typically increased grocery spending for the holidays doesn’t occur until the second half. Furthermore, inflation has contributed to digital purchasing power entering negative territory for the first time on record. This means that consumers now have to purchase the same goods online for $1.01, which would have otherwise cost $1.00 in June of 2019.

Information for this briefing was found via MarketWatch, Adobe Inc, and Brick Meets Click. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

Consumer Spending Data Compiled by the US Bureau of Economic Analysis Significantly Inaccurate

The US federal government has been issuing a monthly report which measures consumer spending. The...

Thursday, June 4, 2020, 01:34:00 PM

Household Net Worth Sent Soaring Amid Real Estate Boom

The Covid-19 pandemic has sent some households’ net worth soaring by more than $2 trillion...

Sunday, June 13, 2021, 03:01:00 PM

US Consumers Delve Into Savings to Keep up With Spending Habits as Incomes Tumble in October

As numerous stimulus programs that were part of the CARES Act ended over the summer,...

Thursday, November 26, 2020, 12:21:00 PM

US Economic Recovery Hits Standstill After Consumer Spending Declines Once Again

According to consumer spending data compiled by JPMorgan, it appears that the economic recovery in...

Tuesday, August 4, 2020, 03:41:34 PM

Canadian Households Focusing on Retaining Savings and Paying Off Debt, Not Consumption

It appears that an increasing number of Canadians have been focusing on either paying off...

Saturday, January 16, 2021, 03:44:00 PM