Consumer Goods Prices = Have Fallen… -3% Online & -1% Offline Over 2 1/4 Years per Adobe DPI… Consumer Prices For Matching Products - Online vs. Offline $1.02 A US Offline = -1% $1.00 ), 6 /1 /1 1 $0.98 d to e x e Online = -3% (Ind $0.96 s e ic r P $0.94 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 Online Retail (DPI) Offline Retail Source: Adobe Digital Economy Project Note: Adobe Digital Economy Project measures prices and sales volume for 80% of online transactions at top 100 USA retailers (15B site visits & 2.2MM products) then calculates a Digital Price Index (DPI) using a Fisher 112 Ideal model. CPI calculates USA prices using a basket of 83K goods, tracked monthly, & applied to a Laspeyeres model. DPI Excludes Apparel. Austan Goolsbee serves as strategic advisor to Adobe DPI project.