Generally speaking, no, overall prices in stores are not lower than they were a year ago. Instead, they are still slightly higher, though the speed at which they are rising has slowed down significantly.
To understand why this is the case, it helps to look at the difference between how economists measure inflation, as well as how specific categories of goods are behaving.
1. "Disinflation" vs. "Deflation"
The most important distinction to make is between disinflation (prices are still rising, but at a slower pace) and deflation (prices are actually falling).
•Over the last year, major economies (like the U.S., Canada, and Europe) have experienced disinflation. Inflation rates have cooled down from their peak of 8–9% in 2022 to around 2–3%.
•This means that if a shopping cart of goods cost $100 a year ago, it might cost $102 or $103 today. The price has still gone up, just not as drastically as it did during the height of the inflation surge. Actual deflation (where that $100 cart drops to $98) is very rare in a healthy economy.
2. What is cheaper? (The Exceptions)
While overall store prices are higher, certain specific categories have seen price drops compared to a year ago due to supply chains normalizing or commodity prices falling:
•Gasoline and Energy: Fuel prices are highly volatile and have periodically been lower year-over-year, which can lower the cost of transporting goods.
•Used Cars and Electronics: Certain durable goods, such as used vehicles, televisions, and some computer hardware, have seen price declines compared to their post-pandemic peaks.
•Select Grocery Items: While the overall grocery bill is higher, specific items (like eggs, fresh fruits, or certain meats) occasionally drop in price compared to the previous year depending on agricultural yields and disease control (like avian flu recovery).
3. What is still more expensive?
•Services: Dining out, haircuts, dry cleaning, and auto repairs are generally much more expensive than a year ago because labor costs remain high.
•Rent and Housing: Shelter costs have remained one of the stickiest drivers of inflation.
•Packaged Foods: Many major consumer goods companies have kept prices elevated to protect their profit margins, even as their raw ingredient costs have stabilized.
Summary
If you feel like your store runs are still costing you more than they did last year, your perception is correct. While you might find a few isolated deals or price cuts on specific items, the overall cost of living and shopping remains higher than it was a year ago.