ADOBE DIGITAL ECONOMY PROJECT
JUNE 2017 UPDATE
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Main Takeaways: July
飩 In the U.S., topline inflation is down across DPI categories for the fourth month in a row (-0.3% in the all-items index and -0.8% in the all-items less grocery
index). This is the fourth month of deflation in the DPI following four straight months of inflation. Prices remain down year-over-year in the all-items index
(-0.7%) and down for the all-items less grocery index (-2.0%)
飩 The Adobe DPI for July now includes jewelry, a category which includes men鈥檚 and women鈥檚 rings, necklaces, watches, and other accessories. The category is
up 0.4% in July, consistent with seasonal price changes for this category in the past. Year-over-year, prices are down -1.9% from July 2016.
飩 Inflation in July in the U.S. affected travelers purchasing hotels domestically, where inflation is 0.6% month over month. Other categories showing inflation
include auto parts (0.7%) and groceries (0.4%).
飩 In July, deflation was concentrated in domestic flights (-5.4% MoM) and tablets (-3.2% MoM), and apparel (-1.5%). The sharp decline in flight prices is consistent
with the monthly seasonality of the summer travel season as domestic flight prices tend to drop in July.
飩 In grocery, inflation in July was driven by staples: in July MoM inflation was highest in dairy products other than cheese and milk (1.5%), breakfast cereals
(0.9%), and cheese and related products (0.8%).
飩 Across the pond, consumers in the U.K. are facing continued price rises in grocery prices., where food prices are up 0.2% MoM in July and up 2.5% year-over-
year for the twelve months ending in July.
飩 Twenty states in the U.S. show inflation in July, while 31 states and D.C. show defl