Are prices lower in stores compared to a year ago?

Are store prices down from a year ago? I'll pull the latest inflation and price data to compare.

No - in aggregate, prices in stores are higher than a year ago, though the rate of increase has slowed and some specific items are cheaper.

That means the overall level of consumer prices was 3.4% higher than it was 12 months earlier.

The August numbers also illustrate an important distinction: slower inflation doesn't mean prices are falling. It means prices are increasing more slowly.

> Food prices rose 0.1% in August for a second month in a row. Grocery store prices were unchanged after declining 0.1% in July

Over the past year, overall food prices advanced 2.7%, Grocery prices rose 2.2%.

The U.S. Bureau of Labor Statistics reported that the food-at-home CPI-U changed 0.0% from July to August 2026... It was 2.2% higher than August 2025 on a not seasonally adjusted 12-month comparison.

FMI – The Food Industry Association commented on the August numbers which show flat food-at-home inflation for August and a 2.2% increase over the last 12 months.

Other countries show similar pattern: Grocery inflation slowed from 4.3% in May to 2.8% in Augustin Canada - still positive.

Retailers are advertising selective cuts: nearly one-third of the everyday in-store assortment at ALDI is priced lower than last year, and Walmart says it has reduced prices on more than 7,000 items.

So while you may find specific products and discount promotions cheaper than last fall, the average basket you pay for at checkout is still about 2-3% more expensive than a year ago.