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 modestly higher on average, though the picture is mixed by category, with heavy discounting by retailers and declines in some items.[1]
As of the latest U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) data for August 2026:
These figures mean a typical basket of goods costs more than in August 2025, continuing a pattern of positive (though moderated) inflation after the sharper post-pandemic spikes. Cumulative prices remain substantially higher than pre-2020/2021 levels.[5]
Retailer Actions and Individual Items
Many major retailers (Target, Walmart, Aldi, Costco, and others) have been aggressively cutting prices or running rollbacks/discounts on thousands of items—often essentials, apparel, home goods, and groceries—to attract budget-conscious shoppers amid softer demand. Target, for example, has lowered prices on well over 10,000 items over the past year (including recent cuts on ~2,000 home and apparel items), with some categories like certain bedding or kids’ boots averaging 15% lower. Similar efforts appear at other chains.[6]
As a result:
Context and Caveats
In short, while you can find lower prices on many individual items through promotions and competition, the average prices paid in stores for a typical mix of goods are higher than a year ago, per official CPI measures. Check current local ads, unit prices, and apps for the best deals, as the environment remains highly promotional. Data can update monthly with new BLS releases.
Citations (9)
- https://www.bls.gov/cpi/latest-numbers.htm
Backs: “No, overall prices in stores are generally not lower than a year ago—they are modestly higher on average, though the picture is mixed by category, with heavy discounting by retailers and declines in some items.”
- https://www.bls.gov/opub/ted/2025/consumer-price-index-2024-in-review.htm
Backs: “Overall CPI (all items) rose 3.4% year-over-year.”
- https://www.bls.gov/news.release/cpi.t01.htm
Backs: “Subcategories varied: dairy was down 0.3%, meats/poultry/fish/eggs up 1.1%, fruits and vegetables up 3.2%, cereals/bakery up 2.6%, nonalcoholic beverages up 3.7%, and other food at home up 2.4%.”
- https://www.bls.gov/news.release/charts/cpi-cpi_rc_1cpibycat.stm
Backs: “Examples include apparel (+3.6%), new vehicles (+0.6%), while used cars/trucks fell 2.3% and medical care commodities fell 2.7%.”
- https://www.npr.org/transcripts/nx-s1-5241014
Backs: “Cumulative prices remain substantially higher than pre-2020/2021 levels.”
- https://chainstoreage.com/target-cuts-prices-thousands-items-ahead-holidays
Backs: “Target, for example, has lowered prices on well over 10,000 items over the past year (including recent cuts on ~2,000 home and apparel items), with some categories like certain bedding or kids’ boots averaging 15% lower. Similar efforts appear at other chains.”
- https://www.investopedia.com/shoppers-could-be-seeing-lower-prices-this-holiday-season-8729096
Backs: “Earlier periods (e.g., much of 2024) saw more outright goods deflation or near-zero change in some categories due to supply normalization and retailer competition.”
- https://www.retail-insight-network.com/news/uk-shop-price-inflation-eases-to-1-4-in-september/
Backs: “International data (e.g., UK shop prices) has also shown low single-digit increases or occasional deflation in non-food.”
- https://www.cnbc.com/2026/10/08/inflation-tariffs-trump-fed-consumer-goods.html
Backs: “Factors like energy costs, some commodity issues, and tariffs have contributed to upward pressure on certain goods in 2025–2026, even as retailers try to absorb or promote around them.”