Are prices lower in stores compared to a year ago?

Overall, prices in stores are not lower than they were a year ago.

While it is true that inflation has slowed down from its peak a few years ago—a trend economists call disinflation—prices are still rising on top of the increases that have already accumulated. A slower rate of price growth does not mean prices are actually falling back to what they used to be; they are just going up more slowly.

According to the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) report, here is how store prices changed between late 2025 and late 2026:

1. The Big Picture: Prices are Still Rising

•Overall inflation: The overall Consumer Price Index rose 3.4% over the 12 months ending in August 2026.

•Groceries (Food at Home): The price of groceries rose 2.2% over the year ending in August 2026. This means that while a grocery bill isn't climbing as aggressively as it was in 2022 and 2023, the average shopping basket still costs more than it did a year ago.

•Apparel and Clothing: Clothing prices rose about 3.6% over the same 12-month period.

2. What is actually cheaper compared to a year ago?

While the average receipt is higher, a few specific categories have seen genuine price drops (deflation):

•Butter and Cheese: Thanks to strong dairy production and a surplus of supply, the price of butter dropped 8% and cheese fell 3.8% year-over-year.

•Eggs: After major supply disruptions in previous years, recovering flock sizes have driven egg prices down significantly compared to their 2025 peak, though the market remains month-to-month volatile.

3. What got significantly more expensive?

The main reason overall store and household costs remain high is due to steep increases in other everyday essentials:

•Gasoline: Energy costs saw a massive spike, with gasoline prices up 27.4% compared to a year ago, heavily impacting transportation costs and the supply chain.

•Fresh Produce and Sweets: Fresh vegetable prices (especially lettuce and tomatoes) are projected to rise over 5.9% for the year, and sugar and sweets have jumped over 7.1%.

4. Retailer Responses: "Rollbacks" and "Shrinkflation"

Because consumers are feeling the pinch of cumulative price increases, big retailers are fighting for cost-conscious shoppers:

•Rollbacks and Promos: Large chains like Walmart and Target are heavily relying on temporary price cuts—such as Walmart introducing over 11,000 "rollbacks" in a single quarter—to keep budgets manageable.

•Shrinkflation: Even if a price on a shelf looks identical to last year's, you may still be paying more per ounce. Many manufacturers continue to combat rising production and transport costs by subtly shrinking package sizes while keeping the price of the item the same.

Summary: Unless you are buying a cart consisting entirely of butter, cheese, and eggs, your overall store run will cost more today than it did a year ago.

Citations (8)

1foodtradenews.comNews and media
foodtradenews.com
Backs: “Overall, prices in stores are not lower than they were a year ago.”
2kpsgill.comNot yet classified
kpsgill.com
Backs: “While it is true that inflation has slowed down from its peak a few years ago—a trend economists call disinflation—prices are still rising on top of the increases that have already accumulated. A slower rate of price growth does not mean prices are actually falling back to what they used to be; they are just going up…”
3usinflationcalculator.comData and tools
usinflationcalculator.com
Backs: “The Big Picture: Prices are Still Rising. Overall inflation: The overall Consumer Price Index rose 3.4% over the 12 months ending in August 2026. Groceries (Food at Home): The price of groceries rose 2.2% over the year ending in August 2026.”
4ycharts.comData and tools
ycharts.com
Backs: “Apparel and Clothing: Clothing prices rose about 3.6% over the same 12-month period. 2.”
5marketplace.orgNews and mediaquality 0.67
marketplace.org
Backs: “While the average receipt is higher, a few specific categories have seen genuine price drops (deflation): Butter and Cheese: Thanks to strong dairy production and a surplus of supply, the price of butter dropped 8% and cheese fell 3.8% year-over-year. Eggs: After major supply disruptions in previous years, recovering…”
6agbull.comNews and media
agbull.com
Backs: “Eggs: After major supply disruptions in previous years, recovering flock sizes have driven egg prices down significantly compared to their 2025 peak, though the market remains month-to-month volatile. 3.”
7thestreet.comNews and mediaquality 0.82
thestreet.com
Backs: “The main reason overall store and household costs remain high is due to steep increases in other everyday essentials: Gasoline: Energy costs saw a massive spike, with gasoline prices up 27.4% compared to a year ago, heavily impacting transportation costs and the supply chain. Fresh Produce and Sweets: Fresh vegetable…”
8economictimes.comNews and media
economictimes.com
Backs: “Shrinkflation: Even if a price on a shelf looks identical to last year's, you may still be paying more per ounce. Many manufacturers continue to combat rising production and transport costs by subtly shrinking package sizes while keeping the price of the item the same.”