Are prices lower in stores compared to a year ago?

No, overall prices in stores are not lower than a year ago—they're still higher, just rising more slowly than they did during the peak inflation years.

Overall Inflation Picture

The annual inflation rate in the United States was 3.4% for the 12 months ending August, the same as in July. This means average prices across the economy are running about 3.4% higher than they were a year ago.

Grocery Prices

The U.S. food-at-home price index was unchanged in August 2026 and stood 2.2% above its August 2025 level, according to the Bureau of Labor Statistics. As one analysis put it: "Grocery prices are rising more slowly, but groceries are not getting cheaper overall."

However, it's a mixed bag depending on the item. Some specific grocery items actually have dropped:

Meanwhile, other staples have gotten notably more expensive:

Restaurant/Dining Prices

Eating out has seen bigger increases than grocery shopping: the food-away-from-home (restaurant and other foodservice purchases) CPI increased 0.3 percent from July 2026 to August 2026 and was 3.4 percent higher than in August 2025.

Bottom Line

The general trend is that overall price levels remain higher than a year ago, though the pace of increases has slowed compared to the sharp inflation spikes of 2021-2023. As one outlet described it, think of a grocery bill that climbs from $100 to $110, then to $112—the second increase is smaller, but the bill is still $12 higher than when it started. Whether your specific shopping basket feels cheaper or pricier depends heavily on what you buy—eggs and chicken are down, but beef and coffee are up significantly.