the long black fridaycyber monday weekend notched another record for spending the latest data show that shoppers spent more because they wanted to not because inflation boosted their checkout totals that still might not be enough to help retailers however and not all the news is good for the federal reserve’s fight against inflation prices for essential goods are still skyhigh according to the latest figures from adobe analytics consumers plunked down 1165 billion in ecommerce sales a 17 increase from last year and 625 more than in october that increase came despite retailers’ hope to push ever more of the holiday shopping season ahead of halloween even if many consumers did start early while the data from adobe ticker adbe isn’t inflation adjusted the firm’s digital price index fell 19 in november from the yearago period and 32 from october that makes it “clear that strong consumer spending has been driven by netnew demand—and not simply higher prices” according to adobe’s news release going into the holiday season many were worried that the higher cost of living would crimp consumers’ ability to buy gifts in contrast to 2021’s robust showing although as barron’s has written retail sales data showed that shoppers were quick to bounce back when inflation ticked lower we have noted that could translate into strongerthanexpected holiday spending the adobe data seem to dovetail with the idea that slightly lower prices spurred more demand if shoppers were truly hunkered down they wouldn’t have been tempted to buy nonessentials even on sale that should bode well for the economy given how dependent it is on consumer spending one downside is that if americans are happy to keep spending it weakens the case that prices will keep heading lower as the fed wants them to markets weren’t thrilled by the latest strong retail sales reading because it raised concern that the bank will need to keep raising interest rates aggressively a negative for corporate earnings and stock prices for all the talk of inflation cooling and discounts to be had it is still incredibly expensive to buy the things people can’t live without adobe noted grocery prices were up 137 year over year in november for a gain of 03 from october that was actually a good reading marking the second straight month where yearoveryear prices have retreated from record levels price increases from august to october were 14 or higher yet in practical terms it is hardly the muchneeded break many americans may be hoping for we’re still paying much more than last year for the same food and few have seen their income jump double digits to compensate that begs the question of how santa is funding his shopping spree it seems likely that answer isn’t the timely deaths of wealthy uncles or lottery winnings look to credit card debt which also reached record highs in november the other problem is for retailers themselves barron’s has highlighted that retailers have been offering steep discounts noting that they could hit companies’ bottom lines if they boosted sales at the expense of margins the adobe data seems to confirm that retailers were indeed offering big promotions “the decline in online prices for november was driven by heavy discounting during cyber week” the release said “online prices fell sharply for computers where prices dropped 18 year over year down 51 month over month and electronics which fell 134 year over year down 45 month both categories saw the largest year over year drops on record since adobe began tracking online prices in 2014” adobe noted that prices also fell for other categories such as toys and sporting goods so fiscal fourthquarter results from retailers may continue a trend that has been widespread this year higher topline growth that doesn’t flow to the bottom line