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- Amazon’s product prices grew at a slower pace than US inflation this year.
- Amazon’s economists believe its product prices will increase at a slower pace going forward.
- The estimates are part of a broader macroeconomic study put together by Amazon’s economics, science, and finance teams.
The price of products sold on Amazon grew at a slower pace than the US inflation rate this year, an internal document obtained by Insider showed.
Amazon’s product prices increased by 6% in 2022, which is below the average inflation range of 7% to 9% in the US this year, the document said.
Amazon expects its product prices to grow below 3% in 2023 and then turn negative in 2024, it added.
These growth rates show Amazon may be responding to record inflation rates by mitigating its impact on customers. During Amazon’s most recent earnings call in October, CFO Brian Olsavsky said sales growth slowed as “consumers assess their purchasing power.”
“When faced with an uncertain economy or some kind of discontinuous event, customers tend to double-down on companies that they believe have the best customer experience and that take care of them the best. And that is where our efforts remain focused,” Olsavsky said.
The report, put together by Amazon’s economic, finance, and science teams, is part of the company’s internal research into the broader macroeconomic landscape. The 12-page study touched on topics of a recession possibility, inflation forecast, and their impact on Amazon’s overall business, as Insider previously reported.
The report also noted that the most recent forecasts for the US inflation is near 3% by the end of 2023, and slightly higher than 2% in 2024.
In an email to Insider, Amazon’s spokesperson said the company’s leadership team disagreed with its own economists.
“The document in question does not reflect the company’s position on the economy and where it’s headed. Our CFO Brian Olsavsky shared our thinking on our most recent earnings call, and our CEO shared his thoughts in a Dec. 6 interview at the Dealbook event. This document simply reflects the thoughts of some of our economists,” the spokesperson said.
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