Are prices lower in stores compared to a year ago?

No, overall prices in stores are not lower compared to a year ago (as of the latest data around August 2026); they are modestly higher on average, though the picture is mixed by category and item, with some goods cheaper and widespread retailer discounts.[1]

Official Inflation Data (U.S. CPI from BLS)

The Consumer Price Index (CPI-U) rose 3.4% year-over-year in August 2026. Key store-relevant categories include:[2]

•Food: +2.7%

•Food at home (groceries): +2.2% (flat month-over-month in August)

•Commodities less food and energy (core goods, many store items): +0.7%

•Energy (which affects some store costs/transport): +16.3% (gasoline much higher)

•Specifics within groceries: Dairy slightly down (-0.3%); meats/poultry/fish/eggs +1.1% (eggs often sharply lower YoY after prior spikes); fruits/vegetables +3.2%; cereals/bakery +2.6%.[3]

These figures mean the average basket costs more than a year earlier, though the rate of increase has moderated from earlier post-pandemic peaks. Cumulative grocery prices remain substantially higher than pre-2020 levels (around +30% or more since early 2020).[4]

Retailer and Basket-Level Observations

•Major retailers (Walmart, Target, and others) have actively cut prices or expanded “rollbacks”/discounts on thousands of items in recent years to compete for price-sensitive shoppers. This includes groceries, household essentials, and discretionary goods. Some manufacturers (e.g., PepsiCo, General Mills) have also reduced prices on portions of their assortments.[5]

•Independent or specific shopping-cart trackers (e.g., NPR’s Walmart baskets in prior years, or other 2026 basket reports) show averages that are flat-to-up slightly (or occasionally down for narrow staple baskets), with roughly half of items unchanged in quieter periods, some cheaper (e.g., eggs, certain produce, salmon, or dairy in various snapshots), and others more expensive (e.g., beef, coffee, some packaged goods). One recent staple basket tracker noted a ~2% YoY decline for its specific items.[6]

•Goods inflation has generally been lower than services (shelter, insurance, etc.), and some non-food categories like used vehicles or certain medical commodities have declined.[1]

Why It Feels Mixed

•Selective cuts and promotions: Stores frequently lower prices on high-visibility or high-volume items, private-label options, or through sales, which can make specific shopping trips cheaper even as the broad index rises.

•Item variation: Eggs and some dairy/produce have fallen notably in periods after supply recoveries; beef, coffee, and energy-linked items have often risen. Shrinkflation (smaller packages at similar prices) has also affected perceptions in prior years.

•Broader context: Overall inflation remains positive (not deflationary), driven more by services than goods. Energy volatility and other factors (e.g., prior tariffs or supply issues in some reports) have influenced trends.[7]

In short, while many stores feature lower prices or better deals on numerous individual items than a year ago—and goods price growth is relatively mild—the average prices for a typical store basket (especially groceries) are higher according to official measures. Shoppers can often mitigate this through sales, store brands, or switching items. Data is U.S.-focused (the primary source of detailed recent reporting); trends elsewhere can differ. For the absolute latest figures, check the BLS CPI release.

Citations (7)

1bls.govGovernment
https://www.bls.gov/cpi
Backs: “No, overall prices in stores are not lower compared to a year ago (as of the latest data around August 2026); they are modestly higher on average, though the picture is mixed by category and item, with some goods cheaper and widespread retailer discounts.”
2bls.govGovernment
https://www.bls.gov/news.release/charts/cpi-cpi_rc_1cpibycat.stm
Backs: “The Consumer Price Index (CPI-U) rose 3.4% year-over-year in August 2026. Key store-relevant categories include:”
3bls.govGovernment
https://www.bls.gov/news.release/cpi.t01.htm
Backs: “Dairy slightly down (-0.3%); meats/poultry/fish/eggs +1.1% (eggs often sharply lower YoY after prior spikes); fruits/vegetables +3.2%; cereals/bakery +2.6%.”
4americandefault.orgNonprofits and think tanks
https://americandefault.org/statistics/grocery-price-increase-since-2020/
Backs: “Cumulative grocery prices remain substantially higher than pre-2020 levels (around +30% or more since early 2020).”
5retailbrew.comNews and media
https://www.retailbrew.com/stories/2024/12/18/2024-was-the-year-of-discounts-price-cuts-and-more-affordable-assortments
Backs: “Some manufacturers (e.g., PepsiCo, General Mills) have also reduced prices on portions of their assortments.”
6basketreport.comNews and media
https://basketreport.com/
Backs: “One recent staple basket tracker noted a ~2% YoY decline for its specific items.”
7bls.govGovernment
https://www.bls.gov/opub/ted/2025/consumer-price-index-2024-in-review.htm
Backs: “Energy volatility and other factors (e.g., prior tariffs or supply issues in some reports) have influenced trends.”