Are prices lower in stores compared to a year ago?

Overall, prices in U.S. stores are not lower than a year ago—most are still higher, though inflation has slowed and a few specific items have gotten cheaper.

The big picture:
Overall U.S. inflation is still running above the Fed's target. The annual inflation rate in the United States was 3.4% for the 12 months ending August, the same as in July, and the annual inflation rate in the US steadied at 3.4% in August 2026, the same as in July and in line with forecasts.

Groceries specifically:
Grocery prices are rising more slowly, but groceries are not getting cheaper overall—the U.S. food-at-home price index was unchanged in August 2026 and stood 2.2% above its August 2025 level. As one analysis put it, an inflation rate of 2.2% means prices are increasing more slowly than they were during the worst of the food-price surge, but it does not mean the earlier increases have been erased.

Some items ARE cheaper than last year:
It's a mixed bag at the grocery store. The latest Consumer Price Index data from the BLS shows that several everyday grocery staples now cost less than they did a year ago, while other categories continue to head in the opposite direction. Items that got cheaper include Butter (-8.1%), Salad dressing (-4.3%), Cheese and related products (-4.2%), Fresh whole chicken (-3.2%), Fresh and frozen chicken parts (-2.5%), Bacon and related products (-2.8%), among others.

What's still rising:
Meanwhile, the cost of tomatoes is up 12.8% year over year, while apples cost 11% more in July 2026 than they did in July 2025. Broader categories also climbed: grocery store food prices were up 2.2% in August, as fruits, vegetables, beverages, cereals and meats and eggs came with higher tags, while clothing (up 3.6%), new cars (up 0.6%), hospital services (up 5.2%) and vehicle maintenance (up 5.2%) also added expenses.

Gasoline — an exception:
Gas is actually one category that's dropped significantly. Gasoline prices are 9.5 percent cheaper than they were a year ago, after soaring as high as 59.8 percent in June 2022, though prices at the pump still cost about 15.3 percent more than before the pandemic. However, note that more recent data shows gas prices have since turned back upward.

Bottom line: While the rate of price increases has cooled compared to the worst inflation years, most items in stores still cost more than they did a year ago. A handful of specific products (eggs, butter, chicken, bacon, some dairy) are genuinely cheaper, but the overall grocery basket and broader consumer basket remain higher year-over-year, with experts noting that grocery prices may "never" come down to pre-inflation levels, even as the pace of increases slows.