UK's online prices decline 6.2% YoY, steepest deflation since Mar 2022

25 Sep '23

1 min read

Pic: Shutterstock/Thidarat Kwangten

Insights

Online spending in the UK for August 2023 experienced a decline, with a total of £9.43 billion, representing a 1.3 per cent YoY drop and a 3.5 per cent MoM fall.
The period also marked a 6.2 per cent YoY deflation in online prices.
BNPL debt surged, peaking at £1.57 billion for the month and accounting for 16.7 per cent of online spending in August.

Online spending in the UK for August 2023 totalled £9.43 billion, displaying a year-on-year (YoY) decrease of 1.3 per cent and a 3.5 per cent month-on-month (MoM) drop. The data also revealed a remarkable 6.2 per cent YoY decline in online prices, marking the most significant deflation since March 2022.

There was a surge in Buy Now Pay Later (BNPL) debt, which peaked at £1.57 billion in August, making up 16.7 per cent of total online spending for the month. The accumulated spending through BNPL since January has been £10.6 billion, constituting 16.4 per cent of total expenditure, a notable increase from 12.3 per cent YoY, according to the latest findings from the Adobe Digital Economy Index.

The end of August and the start of September witnessed a significant rise in online shopping for school uniforms, with a 48 per cent increase in the last week of August and a 76 per cent YoY uptick in the first week of September.

While e-commerce social traffic via Instagram dropped by 12 per cent, TikTok’s share jumped 71 per cent in August 2023.

Fibre2Fashion News Desk (NB)

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