Are prices lower in stores compared to a year ago?

No, on average, prices in stores are not lower than they were a year ago. Instead, the retail economy is experiencing disinflation—meaning that while prices are still rising, they are doing so at a slower rate than the dramatic spikes seen in previous years.

The latest Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics shows that overall consumer prices have increased by 3.7% year-over-year.

Here is a breakdown of what is happening on store shelves:

1. Grocery Store Prices (Food-at-Home)

The cost of groceries is 1.8% higher overall than a year ago. While this is a welcome slowdown compared to the double-digit spikes of 2022 and 2023, it means the average grocery bill continues to climb, rather than get cheaper.

•What is more expensive: Beef is a major driver of grocery inflation, with beef and veal prices rising heavily (nearly 9% higher) due to lower cattle production. Nonalcoholic beverages, retail coffee (up 7.1%), and bakery products also remain significantly higher than last year.

•What has actually gotten cheaper: A few select aisles have seen price drops compared to last year. For example, retail dairy products (like cheese and milk) are down about 0.7%, and pork prices have dipped by about 0.7% year-over-year.

2. Retail Goods and Apparel

Other in-store items like clothing and shoes are generally more expensive. Apparel prices have continued to rise, up roughly 3.4% to 3.9% depending on the specific category.

3. Dining Out

If you are buying food away from home (restaurants, fast food, and cafeterias), prices are significantly higher, posting a 3.5% increase over last year.

Why store trips still feel so expensive

Even if inflation has cooled down to a more manageable level, shoppers still feel a heavy financial burden at checkout for two main reasons:

•Compounding Costs: A slower inflation rate does not mean prices are dropping; it just means they are rising more slowly on top of the already inflated prices from the last few years.

•Shrinkflation & Skimpflation: Many brands are keeping shelf prices the same but quietly reducing the volume of the product (shrinkflation) or using cheaper substitute ingredients (skimpflation) to manage their own rising production and transportation costs, meaning you are often getting less value for your dollar.

Citations (9)

1foodtradenews.comNews and media
foodtradenews.com
Backs: “No, on average, prices in stores are not lower than they were a year ago.”
2bls.govGovernment
bls.gov
Backs: “The latest Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics shows that overall consumer prices have increased by 3.7% year-over-year.”
3tradingeconomics.comData and tools
tradingeconomics.com
Backs: “The latest Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics shows that overall consumer prices have increased by 3.7% year-over-year.”
4usda.govGovernment
usda.gov
Backs: “The cost of groceries is 1.8% higher overall than a year ago. While this is a welcome slowdown compared to the double-digit spikes of 2022 and 2023, it means the average grocery bill continues to climb, rather than get cheaper.”
5foodnavigator.comNews and mediaquality 0.68
foodnavigator.com
Backs: “What is more expensive: Beef is a major driver of grocery inflation, with beef and veal prices rising heavily (nearly 9% higher) due to lower cattle production. Nonalcoholic beverages, retail coffee (up 7.1%), and bakery products also remain significantly higher than last year.”
6bls.govGovernment
bls.gov
Backs: “Apparel prices have continued to rise, up roughly 3.4% to 3.9% depending on the specific category.”
7naahq.orgNonprofits and think tanks
naahq.org
Backs: “Apparel prices have continued to rise, up roughly 3.4% to 3.9% depending on the specific category.”
8ourwabisabilife.comNot yet classified
ourwabisabilife.com
Backs: “Even if inflation has cooled down to a more manageable level, shoppers still feel a heavy financial burden at checkout for two main reasons: Compounding Costs: A slower inflation rate does not mean prices are dropping; it just means they are rising more slowly on top of the already inflated prices from the last few…”
9youtube.comSocial media and video
youtube.com
Backs: “Shrinkflation & Skimpflation: Many brands are keeping shelf prices the same but quietly reducing the volume of the product (shrinkflation) or using cheaper substitute ingredients (skimpflation) to manage their own rising production and transportation costs, meaning you are often getting less value for your dollar.”