Are prices lower in stores compared to a year ago?
Generally speaking, no, overall prices in stores are not lower than they were a year ago.
While the high-speed inflation of the post-pandemic years has cooled down, we are experiencing disinflation (prices are rising at a slower, more normal pace) rather than deflation (where prices actually drop).
The Consumer Price Index (CPI) shows that overall consumer prices rose by 3.4% year-over-year. However, price changes vary significantly depending on what you are shopping for.
1. Groceries & Supermarkets (Food-at-Home)
On average, grocery store prices are 2.5% to 2.7% higher than they were a year ago. However, specific aisles tell very different stories:
2. Retail Goods (Clothing, Tech, and Autos)
In non-grocery retail, some select categories have seen modest price drops, while others continue to climb:
Why doesn't it feel like inflation is slowing?
Many shoppers wonder why their receipts still feel so high if inflation is "cooling." This is due to cumulative inflation. Even if a grocery item only goes up by 2% this year, that increase is stacked on top of the massive 10% to 13% jumps seen in 2022 and 2023.
Rather than lowering the permanent "sticker prices" on shelves, major retail and grocery chains are instead trying to win back budget-conscious shoppers by offering more frequent promotions, deeper weekly sales, and temporary discounts.
Citations (12)
- nbcnews.com
Backs: “Generally speaking, no, overall prices in stores are not lower than they were a year ago.”
- ncoa.org
Backs: “While the high-speed inflation of the post-pandemic years has cooled down, we are experiencing disinflation (prices are rising at a slower, more normal pace) rather than deflation (where prices actually drop).”
- foodnavigator.com
Backs: “While the high-speed inflation of the post-pandemic years has cooled down, we are experiencing disinflation (prices are rising at a slower, more normal pace) rather than deflation (where prices actually drop).”
- nysut.org
Backs: “The Consumer Price Index (CPI) shows that overall consumer prices rose by 3.4% year-over-year.”
- usafacts.org
Backs: “However, price changes vary significantly depending on what you are shopping for.”
- usda.gov
Backs: “Groceries & Supermarkets (Food-at-Home). On average, grocery store prices are 2.5% to 2.7% higher than they were a year ago.”
- grocerytradenews.com
Backs: “What is cheaper: Eggs: Egg prices have dropped significantly—down 25% to 30% compared to last year, following a strong recovery from avian flu disruptions. Poultry and Pork: Prices for chicken and pork have largely flattened out, with some months showing slight year-over-year declines of around 0.5%.”
- officialdata.org
Backs: “Apparel prices have risen by 3.2% to 3.6% compared to last year. Electronics & IT Hardware: This is one of the few areas where prices have actually dropped, down about 1% year-over-year for items like computers, smart home devices, and peripherals.”
- ycharts.com
Backs: “Apparel prices have risen by 3.2% to 3.6% compared to last year. Electronics & IT Hardware: This is one of the few areas where prices have actually dropped, down about 1% year-over-year for items like computers, smart home devices, and peripherals.”
- ycharts.com
Backs: “Electronics & IT Hardware: This is one of the few areas where prices have actually dropped, down about 1% year-over-year for items like computers, smart home devices, and peripherals.”
- ycharts.com
Backs: “Used Vehicles: Used car and truck prices have steadily declined, down about 2.3% compared to last year. (However, they remain significantly higher than their pre-pandemic baselines).”
- youtube.com
Backs: “(However, they remain significantly higher than their pre-pandemic baselines).”