Are prices lower in stores compared to a year ago?

No, overall prices in stores are generally not lower than a year ago; they are higher on average, though the increase has slowed, some specific items or categories have declined or stayed flat, and retailers have used discounts/promotions.[1]

Overall Inflation (US CPI)

•As of August 2026, the Consumer Price Index (CPI-U) for all items rose about 3.4% year-over-year (from August 2025). Earlier in 2026, it reached as high as 4.2% (May). Core CPI (excluding food and energy) was around 2.4%.[1]

•For full-year 2025, CPI rose 2.7% (December 2024 to December 2025); for 2024 it was 2.9%. Food-at-home (groceries) rose ~2.2–2.4% in recent periods, food overall ~2.7–3.1%.[2]

•Energy has been volatile (sometimes sharp rises), while goods have seen more moderation or deflation in spots than services (e.g., shelter/housing remains sticky).

This means a typical basket of goods and services costs more than a year prior. Inflation has cooled substantially from the 2021–2023 peaks but remains positive (prices rising, not falling overall).

Store-Level and Retail Observations

•Retailer actions and discounts: 2024 saw widespread price cuts and promotions (e.g., Target cutting thousands of items, Walmart “rollbacks,” others following) as consumers sought value, contributing to goods deflation in some periods. Similar competitive discounting has continued. Goods prices (vs. services) have often been flat or slightly down year-over-year in parts of recent data.[3]

•Specific tracking examples:

•NPR’s multi-year Walmart shopping cart (dozens of common items): Over 2024, average prices rose only ~0.7% (half unchanged, some down like bananas/salmon/pork, others up like eggs/beef due to factors like avian flu). The 5-year view (vs. pre-pandemic) showed much larger cumulative rises (~25%). Similar patterns of stability + selective declines appear in later tracking.[4]

•Other grocery/household baskets show mixed results—some items or private-label goods cheaper, but overall cart totals often still higher (e.g., one 2026 tracker noted ~9% higher for a large basket vs. a year earlier despite recent dips).[5]

•Categories that have seen declines or weakness: Certain electronics/TVs/computers/smartphones (ongoing tech deflation), some apparel/furniture/appliances, used cars/trucks (at times), gasoline (volatile, sometimes down), select groceries (produce, some proteins, via promotions), and non-food items in competitive markets. UK shop price indexes have occasionally shown overall mild deflation (e.g., -0.6% to -0.8% YoY in late 2024) driven by non-food discounting.[6]

•Categories still rising: Many staples (meats, dairy, eggs at times, coffee), household goods, and especially services. Shrinkflation (smaller packages at similar prices) has also affected some items.[7]

Key Context

•Perception gap: Many shoppers feel prices are still high because of the large cumulative increase since 2019–2021 (often 25%+ overall, more for food/energy/housing). Stable or slightly higher prices don’t feel like relief after sharp prior jumps. Wages have risen too, but the “sticker shock” lingers.[8]

•Variation: Results differ by store (discounters like Aldi/Walmart often more aggressive on cuts), location, category (goods vs. groceries vs. services), and promotions. Online/marketplace pricing and private labels can offer more savings.

•Not uniform deflation: True broad-based price declines (deflation) have been limited mostly to goods or specific periods/items, not the full store experience. Services and shelter keep overall CPI positive.

In short, while inflation has moderated, retailers have cut or held prices on many items, and some goods are cheaper, the typical in-store experience still shows higher prices than a year ago on average. Check current BLS CPI releases, retailer apps for rollbacks, or local price comparisons for the most relevant view, as conditions evolve with energy, supply chains, and competition.

Citations (8)

1bls.govGovernment
https://www.bls.gov/cpi/latest-numbers.htm
Backs: “No, overall prices in stores are generally not lower than a year ago; they are higher on average, though the increase has slowed, some specific items or categories have declined or stayed flat, and retailers have used discounts/promotions.”
2bls.govGovernment
https://www.bls.gov/opub/ted/2026/consumer-price-index-2025-in-review.htm
Backs: “Food-at-home (groceries) rose ~2.2–2.4% in recent periods, food overall ~2.7–3.1%.”
3retailbrew.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 (vs. services) have often been flat or slightly down year-over-year in parts of recent data.”
4npr.orgNews and mediaquality 0.93
https://text.npr.org/nx-s1-5241014
Backs: “Similar patterns of stability + selective declines appear in later tracking.”
5cleveland.comNot yet classified
https://www.cleveland.com/news/2026/03/grocery-and-household-prices-in-2026-what-it-costs-now-vs-last-year.html
Backs: “Other grocery/household baskets show mixed results—some items or private-label goods cheaper, but overall cart totals often still higher (e.g., one 2026 tracker noted ~9% higher for a large basket vs. a year earlier despite recent dips).”
6independent.co.ukNews and mediaquality 0.73
https://www.independent.co.uk/news/uk/brc-government-chancellor-helen-dickinson-inflation-b2637143.html
Backs: “UK shop price indexes have occasionally shown overall mild deflation (e.g., -0.6% to -0.8% YoY in late 2024) driven by non-food discounting.”
7gao.govGovernment
https://www.gao.gov/blog/what-shrinkflation-and-how-has-it-affected-grocery-store-items-recently
Backs: “Shrinkflation (smaller packages at similar prices) has also affected some items.”
8npr.orgNews and mediaquality 0.93
https://www.npr.org/transcripts/nx-s1-5241014
Backs: “Stable or slightly higher prices don’t feel like relief after sharp prior jumps. Wages have risen too, but the “sticker shock” lingers.”