Are prices lower in stores compared to a year ago?

Broadly speaking, no, overall prices in stores are not lower than they were a year ago.

While the rapid rate of inflation has slowed down significantly (a trend economists call disinflation), prices on average are still rising—meaning they are higher than they were at this time last year.

However, because the inflation rate is uneven, some specific store categories and thousands of individual products have actually dropped in price.

1. The Broad Economic Picture (August 2026 vs. August 2025)

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

•Overall Consumer Prices: Up 3.4% year-over-year.

•Grocery Store Prices (Food-at-Home): Up 2.2% year-over-year.

•Apparel (Clothing): Up 3.6% year-over-year.

•New Vehicles: Up 0.6% year-over-year.

Because these numbers are positive, the average shopping basket still costs more today than it did a year ago.

2. What is actually cheaper?

If you are looking for relief, several major categories have seen actual price declines (deflation) over the past year:

•Eggs: Egg prices have seen the most dramatic drop—falling 25% to 34% year-over-year as poultry farms recovered from avian flu supply shocks.

•Dairy Products: Dairy is down slightly (-0.3% year-over-year), with noticeable drops in the prices of butter and cheese.

•Certain Meats: Chicken (fresh whole and frozen parts) and bacon are cheaper than they were a year ago.

•Used Cars & Trucks: Down 2.3% year-over-year.

•Medical Commodities: Down 2.7% year-over-year.

3. What is still getting more expensive?

The primary drivers keeping store and utility bills high include:

•Fresh Produce: Fruits and vegetables are up 3.2% overall, with some items like tomatoes and apples seeing double-digit price hikes.

•Coffee & Sweets: Sugar and sweets are up 6.1%, while coffee prices are up roughly 9% to 15% depending on the type.

•Gasoline: Up 27.4% year-over-year, which exerts upward pressure on shipping costs for retailers.

4. Major Retailers are Slashing Prices

Because consumers are showing "spending fatigue" from years of high costs, big retail chains are actively fighting for budget-conscious shoppers by aggressively cutting prices:

•Target announced permanent price rollbacks on nearly 2,000 items (including home goods, apparel, and shoes) ahead of the holiday season, on top of 10,000 other price cuts made over the last year.

•Walmart and Aldi have enacted similar massive discount campaigns on food, household essentials, and toys to ease the burden on shoppers.

Summary

While your total store receipt is likely slightly higher on average than it was a year ago, you will find relief on specific items like eggs, dairy, and used goods. Shopping at major chains that are locked in price wars is currently the best way to find prices that are lower than last year's.

Citations (11)

1betterreport.comLow provenance
betterreport.com
Backs: “Broadly speaking, no, overall prices in stores are not lower than they were a year ago.”
2bls.govGovernment
bls.gov
Backs: “Broadly speaking, no, overall prices in stores are not lower than they were a year ago.”
3in2013dollars.comData and tools
in2013dollars.com
Backs: “While the rapid rate of inflation has slowed down significantly (a trend economists call disinflation), prices on average are still rising—meaning they are higher than they were at this time last year.”
4inc.comNews and mediaquality 0.88
inc.com
Backs: “However, because the inflation rate is uneven, some specific store categories and thousands of individual products have actually dropped in price.”
5usda.govGovernment
usda.gov
Backs: “Grocery Store Prices (Food-at-Home): Up 2.2% year-over-year.”
6ycharts.comData and tools
ycharts.com
Backs: “Apparel (Clothing): Up 3.6% year-over-year. New Vehicles: Up 0.6% year-over-year.”
7usinflationcalculator.comData and tools
usinflationcalculator.com
Backs: “New Vehicles: Up 0.6% year-over-year.”
8grocerytradenews.comNews and media
grocerytradenews.com
Backs: “If you are looking for relief, several major categories have seen actual price declines (deflation) over the past year: Eggs: Egg prices have seen the most dramatic drop—falling 25% to 34% year-over-year as poultry farms recovered from avian flu supply shocks. Dairy Products: Dairy is down slightly (-0.3%…”
9grocerytradenews.comNews and media
grocerytradenews.com
Backs: “Dairy Products: Dairy is down slightly (-0.3% year-over-year), with noticeable drops in the prices of butter and cheese. Certain Meats: Chicken (fresh whole and frozen parts) and bacon are cheaper than they were a year ago.”
10bls.govGovernment
bls.gov
Backs: “Medical Commodities: Down 2.7% year-over-year.”
11pbs.orgNews and mediaquality 0.87
pbs.org
Backs: “Major Retailers are Slashing Prices. Because consumers are showing "spending fatigue" from years of high costs, big retail chains are actively fighting for budget-conscious shoppers by aggressively cutting prices: Target announced permanent price rollbacks on nearly 2,000 items (including home goods, apparel, and…”