Are prices lower in stores compared to a year ago?

On average, no, store prices are not lower than they were a year ago.

While the rapid rate of inflation has slowed down, prices overall are still rising—meaning they are higher on average than they were at this time last year. However, the situation is nuanced. Because shoppers are feeling the pinch of sustained high costs, major retailers have launched high-profile "price wars," slashing prices on thousands of specific items to win back budget-conscious consumers.

The price landscape is defined by the following trends:

1. Overall Inflation is Still Rising (But More Slowly)

According to the U.S. Bureau of Labor Statistics (BLS):

•General Store Goods: The headline Consumer Price Index (CPI-U) rose 3.4% year-over-year. This means a dollar today has slightly less purchasing power than it did a year ago.

•Groceries (Food-at-Home): Grocery store prices rose 2.2% year-over-year. While this is a much slower pace of increase than the double-digit spikes seen in previous years, it still represents an upward trend rather than a price drop.

•Dining Out (Food-away-from-Home): Restaurant prices continue to climb, up 3.4% compared to last year.

2. Major Retailers Are Slashing Prices to Compete

To attract cash-strapped shoppers, several massive retail and grocery chains have introduced sweeping price cuts on select everyday items:

•Target: Lowered prices on more than 3,000 items across apparel, home goods, baby essentials, and select foods by 5% to 20%.

•Aldi: Announced significant price cuts nationwide, reporting that roughly one-third of its in-store inventory is cheaper than last year (such as Honeycrisp apples, fresh herbs, and family-pack chicken breasts).

•Walmart, Costco, and Kroger: Have continuously adjusted pricing on private labels and staples like eggs and beef to maintain their "everyday low price" appeal.

3. What is Cheaper vs. What is More Expensive?

Depending on what you are buying, your receipt might look very different compared to last year:

•Items that have gotten cheaper (or stabilized): Eggs and dairy products have seen significant downward price adjustments after massive spikes in previous years.

•Items that have gotten more expensive: Beef, fresh vegetables, sweets/chocolate, and nonalcoholic beverages (like coffee and tea) have continued to face upward pressure and cost more than they did last year. Gasoline and energy utilities also saw sharp year-over-year increases.

The Bottom Line: While the average shopping cart costs more than it did a year ago, you can find lower prices if you actively seek out store brands, shop sales, or frequent retailers currently engaged in aggressive price-cutting campaigns.

Citations (14)

1cbsnews.comNews and mediaquality 0.88
cbsnews.com
Backs: “On average, no, store prices are not lower than they were a year ago.”
2in2013dollars.comData and tools
in2013dollars.com
Backs: “On average, no, store prices are not lower than they were a year ago.”
3newsweek.comNews and mediaquality 0.82
newsweek.com
Backs: “Because shoppers are feeling the pinch of sustained high costs, major retailers have launched high-profile "price wars," slashing prices on thousands of specific items to win back budget-conscious consumers.”
4newsday.comNot yet classified
newsday.com
Backs: “Because shoppers are feeling the pinch of sustained high costs, major retailers have launched high-profile "price wars," slashing prices on thousands of specific items to win back budget-conscious consumers.”
5senate.govGovernment
senate.gov
Backs: “Overall Inflation is Still Rising (But More Slowly). According to the U.S. Bureau of Labor Statistics (BLS): General Store Goods: The headline Consumer Price Index (CPI-U) rose 3.4% year-over-year. This means a dollar today has slightly less purchasing power than it did a year ago.”
6usda.govGovernment
usda.gov
Backs: “Groceries (Food-at-Home): Grocery store prices rose 2.2% year-over-year. While this is a much slower pace of increase than the double-digit spikes seen in previous years, it still represents an upward trend rather than a price drop.”
7money.comCommercial contentquality 0.59
money.com
Backs: “While this is a much slower pace of increase than the double-digit spikes seen in previous years, it still represents an upward trend rather than a price drop. Dining Out (Food-away-from-Home): Restaurant prices continue to climb, up 3.4% compared to last year.”
8foxbusiness.comNews and mediaquality 0.79
foxbusiness.com
Backs: “Major Retailers Are Slashing Prices to Compete. To attract cash-strapped shoppers, several massive retail and grocery chains have introduced sweeping price cuts on select everyday items: Target: Lowered prices on more than 3,000 items across apparel, home goods, baby essentials, and select foods by 5% to 20%. Aldi:…”
9target.comCompanies
target.com
Backs: “Major Retailers Are Slashing Prices to Compete. To attract cash-strapped shoppers, several massive retail and grocery chains have introduced sweeping price cuts on select everyday items: Target: Lowered prices on more than 3,000 items across apparel, home goods, baby essentials, and select foods by 5% to 20%. Aldi:…”
10weareiowa.comNot yet classified
weareiowa.com
Backs: “Aldi: Announced significant price cuts nationwide, reporting that roughly one-third of its in-store inventory is cheaper than last year (such as Honeycrisp apples, fresh herbs, and family-pack chicken breasts). Walmart, Costco, and Kroger: Have continuously adjusted pricing on private labels and staples like eggs and…”
11kfgo.comNot yet classified
kfgo.com
Backs: “Walmart, Costco, and Kroger: Have continuously adjusted pricing on private labels and staples like eggs and beef to maintain their "everyday low price" appeal.”
12agbull.comNews and media
agbull.com
Backs: “Depending on what you are buying, your receipt might look very different compared to last year: Items that have gotten cheaper (or stabilized): Eggs and dairy products have seen significant downward price adjustments after massive spikes in previous years.”
13tradingeconomics.comData and tools
tradingeconomics.com
Backs: “Gasoline and energy utilities also saw sharp year-over-year increases.”
14fastcompany.comNews and mediaquality 0.80
fastcompany.com
Backs: “The Bottom Line: While the average shopping cart costs more than it did a year ago, you can find lower prices if you actively seek out store brands, shop sales, or frequent retailers currently engaged in aggressive price-cutting campaigns.”