Are prices lower in stores compared to a year ago?

No, overall prices in stores are not lower than a year ago—they are generally modestly higher, though the rate of increase has slowed significantly from peak inflation periods, many individual items are stable or cheaper, and retailers have cut prices on thousands of products.[1]

Official Inflation Data (U.S. CPI, as of August 2026)

According to the latest U.S. Bureau of Labor Statistics (BLS) Consumer Price Index data:

•All items: +3.4% year-over-year (August 2025 to August 2026).[1]

•Food overall: +2.7%.

•Food at home (groceries/supermarket prices): +2.2% (unchanged month-over-month in August in some reports). Dairy was slightly down (-0.3%), while fruits/vegetables (+3.2%), nonalcoholic beverages (+3.7%), and cereals/bakery (+2.6%) rose. Meats/poultry/fish/eggs were up more modestly (~1.1% in some breakdowns).[2]

•Core goods (commodities less food and energy): +0.7%. This covers many non-food store items like apparel (+3.6%), new vehicles (+0.6%), household goods, etc. Used cars/trucks were down (-2.3%), and medical care commodities down (-2.7%).[3]

•Energy (relevant for stores via fuel costs passed on) has been volatile and higher overall recently (+16.3% in one recent reading, driven by gasoline), though this fluctuates.[1]

These figures mean the average basket of goods costs more than a year prior, even if the pace is moderate (near or above the Fed’s ~2% target) and far below 2021–2022 peaks. Cumulative prices remain substantially elevated versus pre-pandemic levels (e.g., food-at-home ~32% higher than early 2020).[4]

Store-Level and Retailer Observations

•Retailer actions: Major chains like Walmart, Target, and others have implemented thousands of price cuts/rollbacks on groceries, household items, toys, and more, especially in 2024–2025/2026, in response to consumer pushback and softer demand. Examples include cuts on essentials, ground beef promotions, and private-label expansions. This has helped keep some shelf prices stable or lower on specific SKUs and increased promotions/discounts. Goods prices (ex-food/energy) have sometimes shown near-zero or negative growth in stretches.[5]

•Shopping basket trackers (e.g., NPR at Walmart): Results are mixed by year and items. In one 2024 comparison, average tracked prices rose just ~0.7%, with half unchanged, ~20–25% cheaper (e.g., some produce, salmon, pork), and others higher (e.g., eggs, beef, detergent). A later check showed a larger average rise (~5% in one period), with roughly half higher, a quarter cheaper (e.g., eggs dropping sharply post-bird flu peaks, milk, Cheerios), and some tariff- or weather-related increases. Many items feel “stuck” at elevated levels vs. 2019.[6]

•Specific categories that have declined or stabilized in various recent periods include certain dairy, eggs (volatile due to avian flu), some produce, electronics/accessories, toys, and select packaged goods. Beef and other meats have often stayed high or risen due to supply issues.[7]

Why It May Not Feel Lower

•Base effects and psychology: Prices surged 20–30%+ cumulatively in many categories post-2020. Even small further increases or flat prices feel high relative to earlier years. Shrinkflation (smaller packages at similar prices) also plays a role in some products.[8]

•Mix of items: Your personal cart matters—heavy on rising categories (e.g., certain meats, energy-sensitive goods) vs. falling ones (e.g., eggs at troughs, discounted apparel).

•Services vs. goods: Broader inflation includes rising shelter/rents and services, which dominate CPI but are less “in-store.” Pure store/goods inflation has been milder.

•Other factors: Tariffs, weather/supply shocks (e.g., coffee, cacao), and energy volatility can push specific prices up, while competition and lower input costs enable cuts elsewhere.

In short, broad deflation in store prices has not occurred over the past year—official indexes show modest net increases—but inflation has cooled a lot, promotions are widespread, and many shoppers can find deals or stable prices on individual items by shopping carefully (store brands, sales, etc.). For the absolute latest figures, check BLS CPI releases or retailer apps, as monthly data updates regularly and categories vary.

Citations (8)

1bls.govGovernment
https://www.bls.gov/cpi/
Backs: “No, overall prices in stores are not lower than a year ago—they are generally modestly higher, though the rate of increase has slowed significantly from peak inflation periods, many individual items are stable or cheaper, and retailers have cut prices on thousands of products.”
2grocerytradenews.comNews and media
https://www.grocerytradenews.com/us-grocery-inflation-august-2026/
Backs: “Meats/poultry/fish/eggs were up more modestly (~1.1% in some breakdowns).”
3bls.govGovernment
https://www.bls.gov/news.release/cpi.t01.htm
Backs: “Used cars/trucks were down (-2.3%), and medical care commodities down (-2.7%).”
4americandefault.orgNonprofits and think tanks
https://americandefault.org/statistics/grocery-price-increase-since-2020/
Backs: “Cumulative prices remain substantially elevated versus pre-pandemic levels (e.g., food-at-home ~32% higher than 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: “Goods prices (ex-food/energy) have sometimes shown near-zero or negative growth in stretches.”
6npr.orgNews and mediaquality 0.93
https://text.npr.org/nx-s1-5241014
Backs: “A later check showed a larger average rise (~5% in one period), with roughly half higher, a quarter cheaper (e.g., eggs dropping sharply post-bird flu peaks, milk, Cheerios), and some tariff- or weather-related increases. Many items feel “stuck” at elevated levels vs. 2019.”
7npr.orgNews and mediaquality 0.93
https://www.npr.org/2026/01/14/nx-s1-5638908/walmart-prices-inflation-affordability-shrinkflation
Backs: “Beef and other meats have often stayed high or risen due to supply issues.”
8gao.govGovernment
https://www.gao.gov/products/gao-25-107451
Backs: “Shrinkflation (smaller packages at similar prices) also plays a role in some products.”