Are prices lower in stores compared to a year ago?

Generally speaking, no, overall prices in stores are not lower compared to a year ago.

On a macroeconomic scale, average prices continue to rise, meaning the general cost of living and the average grocery bill are higher than they were in late 2025. However, there is a major exception: several massive retail chains are aggressively cutting prices on thousands of specific everyday items to win back cash-strapped shoppers.

The price landscape is shaped by the following factors:

1. The Macro View: Overall Prices are Still Rising

Inflation is still positive, meaning average prices are higher than they were a year ago.

•Overall Inflation: The U.S. Consumer Price Index (CPI) hovered around a 3.4% year-over-year increase. This means a dollar today has about 3.4% less purchasing power than it did a year ago.

•Grocery Prices (Food-at-Home): Overall grocery store prices are roughly 2.2% to 2.7% higher than they were a year ago. The USDA expects overall food prices to rise by around 3%.

•Energy Costs: A big driver of these higher store prices is energy. Energy index costs (including fuel and transport) saw spikes of up to 16.3% year-over-year, which trickles down into higher shipping costs for store goods.

2. The Store View: Where Prices Are Lower

While the overall average is up, major corporate retailers are fighting a "price war" to attract consumers who are tightening their budgets. If you shop at major retailers, you will find lower prices on thousands of specific household goods, clothing, and pantry staples:

•Target: Target slashed prices on nearly 2,000 items—spanning apparel, footwear, bedding, and home goods. Some of these items (such as kids' boots and women's basics) are priced 15% to 20% lower than they were a year ago. This builds on more than 10,000 price cuts Target made over the past year.

•Walmart: Walmart cut prices on approximately 11,000 products across food, apparel, toys, and household essentials.

•Aldi: The discount grocer has selectively lowered prices on dozens of everyday groceries, including fresh produce, to ease the burden on shoppers.

Why are stores cutting prices if inflation is up?

Retailers are making these selective cuts for two reasons:

1.Falling Consumer Sentiment: Surveys show consumers have become highly cautious with their spending and are actively switching to cheaper store brands. Retailers are lowering prices on high-volume, highly visible basics to get people through the doors.

2.Tariff Refunds: Following a Supreme Court ruling striking down certain previous import tariffs, major companies received massive windfalls. Walmart received nearly $2.9 billion in tariff refunds, while Target received $994 million—both companies have funneled a significant portion of this money into funding these price cuts.

The Bottom Line

If you look at your overall monthly spending, you are likely paying more than you were a year ago because of broader inflation in energy, services, and certain foods. However, if you shop selectively at major big-box stores and opt for store brands or discounted categories (like basic apparel, bedding, and select pantry staples), you can find specific items that are cheaper than they were last year.

Citations (11)

1ncoa.orgNonprofits and think tanks
ncoa.org
Backs: “Generally speaking, no, overall prices in stores are not lower compared to a year ago.”
2in2013dollars.comData and tools
in2013dollars.com
Backs: “On a macroeconomic scale, average prices continue to rise, meaning the general cost of living and the average grocery bill are higher than they were in late 2025.”
3fastcompany.comNews and mediaquality 0.80
fastcompany.com
Backs: “On a macroeconomic scale, average prices continue to rise, meaning the general cost of living and the average grocery bill are higher than they were in late 2025.”
4ksl.comNews and mediaquality 0.88
ksl.com
Backs: “However, there is a major exception: several massive retail chains are aggressively cutting prices on thousands of specific everyday items to win back cash-strapped shoppers.”
5bls.govGovernment
bls.gov
Backs: “Overall Inflation: The U.S. Consumer Price Index (CPI) hovered around a 3.4% year-over-year increase.”
6usda.govGovernment
usda.gov
Backs: “Grocery Prices (Food-at-Home): Overall grocery store prices are roughly 2.2% to 2.7% higher than they were a year ago.”
7tipranks.comData and tools
tipranks.com
Backs: “The Store View: Where Prices Are Lower. While the overall average is up, major corporate retailers are fighting a "price war" to attract consumers who are tightening their budgets.”
8facebook.comSocial media and video
facebook.com
Backs: “Target: Target slashed prices on nearly 2,000 items—spanning apparel, footwear, bedding, and home goods. Some of these items (such as kids' boots and women's basics) are priced 15% to 20% lower than they were a year ago.”
9retaildive.comNews and media
retaildive.com
Backs: “Some of these items (such as kids' boots and women's basics) are priced 15% to 20% lower than they were a year ago. This builds on more than 10,000 price cuts Target made over the past year.”
10inc.comNews and mediaquality 0.88
inc.com
Backs: “Walmart: Walmart cut prices on approximately 11,000 products across food, apparel, toys, and household essentials.”
11target.comCompanies
target.com
Backs: “Retailers are lowering prices on high-volume, highly visible basics to get people through the doors. 2.”