Pattern, a leader in e-commerce and marketplace acceleration, has today published its E-commerce Consumer Price Index (ECPI) which reveals that inflation for British online shoppers has been higher than the overall Consumer Price Inflation (CPI) figures in the UK.
The Office of National Statistics (ONS) latest CPI figures reveals that inflation rose by 6.8% in the last 12 months to July 2023, however it is down from 7.9% in June.
On a monthly basis, CPI fell by 0.4% in July, compared to a rise of 0.6% in July 2022. The CPI measures the overall change in consumer prices based on a representative basket of goods and services over time across a large sample of shops and other outlets, including online shopping.
Pattern took this information and analysed a list of household products that are frequently purchased online by British consumers to understand how frequent online shoppers are being impacted by inflation.
The data indicates that the inflation rate for online shoppers is above the overall inflation rate reported by ONS at 11% year-on-year. That means that shoppers who have frequently bought items online have likely paid more.
However, the good news is that the quarter-on-quarter online inflation rate has fallen drastically, now at 2%, mirroring the changes to the wider inflation figures that we are seeing. This means that moving forward, consumers can with good conscience shop online again and know that they will pay similar prices, no matter where they buy.
Pattern’s ECPI also reveals that there are several products that have reduced in price over the past quarter. Many of these products British consumers will expect to purchase several times a year. These include nappy cream (-8%), tissues (-7%), dental floss (-3%) toothbrushes (-3%), tampons (-2%), and laundry powder (-1%). While some of these price shifts are incremental, they could be indicators of what is to come over the following weeks and months.
On the other hand, there are some household items that are continuing to outpace inflation. Deodorant is up by 18%, disinfectant wipes are up by 12%, while coffee, tea, body lotion, hand cream, and baby wipes are all up by 9%.
The data insights come from Pattern’s analysis of the current average prices for the most frequently purchased household items on Amazon UK, comparing the prices of the products to Q2 in 2023 and the same period in 2022.
Neal Fairfield, Director of Consultancy, Europe at Pattern said, “After a long year of inflation, the year-on-year figures are high. If you look at the entire year, Pattern’s data does show that a typical basket of goods that a British consumer might purchase over the course of a year online is up by 11%.
“That does slightly outpace the overall consumer price inflation, which was reported to be at 6.8% in July by the Office for National Statistics.
“However, I’d encourage consumers to look at the here and now. The quarter-on-quarter inflation rate has fallen to 2% which is good news as we continue to have to buy these items regularly and with many choosing to purchase online. It indicates that more relief is on the horizon for consumers.”