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 higher on average, though the rate of increase has moderated significantly from peak inflation years, some categories/items have declined or stayed flat, and retailers have been aggressive with discounts and rollbacks.[1]

Official Inflation Data (US Focus)

The primary measure is the Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS):

•As of August 2026, the all-items CPI was up 3.4% year-over-year.[1]

•Food at home (groceries): +2.2% YoY.[2]

•Commodities less food and energy (a good proxy for many core retail/store goods like apparel, household items, vehicles excluding food/energy): +0.7% YoY.[2]

•Core CPI (all items less food and energy): +2.4% YoY.[1]

Related PCE (Personal Consumption Expenditures) data, the Fed’s preferred gauge, showed similar trends around +3.0–3.4% headline/core in recent months.[3]

Prices rose overall in 2024 (+2.9% all-items CPI Dec 2023–Dec 2024) and 2025 (+2.7%), with goods inflation lower than services (e.g., shelter).[4][5]

Store/Retail-Specific Trends

•Mixed by category: Some items/categories are lower or flat. Examples include used cars/trucks (-2.3% YoY as of Aug 2026), medical care commodities (-2.7%), and durables overall (slightly down in some readings). Certain foods (e.g., dairy at times, eggs after avian flu peaks, some produce/meats) and items like salmon or bananas have seen declines in tracked shopping. Apparel and many packaged goods have risen.[2][6]

•Retailer actions: 2024 saw widespread price cuts (e.g., Target on thousands of items, Walmart “rollbacks” on 6,000+ items in quarters, IKEA ~10% global cuts). This continued into later periods with promotions, everyday low prices, and discounts to drive traffic amid cautious consumers. Goods prices showed periods of near-zero or slight deflation earlier (e.g., nearly -1% for goods in mid-2024).[7][8][9]

•Shopping cart checks: NPR’s multi-year Walmart tracking found average prices up only ~0.7% over 2024 (half of items unchanged; mix of increases/decreases), but a later check showed ~5% average rise in 2025 for their basket. Other trackers (e.g., local price patrols) have found baskets still higher YoY even after some dips.[6][10][11]

•Grocery/unit trends: Shoppers often buy fewer units or switch to value/private-label as prices remain elevated vs. pre-pandemic (cumulative ~25%+ in many baskets since 2019). Unit sales have softened in places even as dollar sales hold via inflation/promotions.[12]

Context and Caveats

•Not uniform deflation: Broad store prices (especially groceries and many household goods) remain higher than a year prior. “Lower prices” often refer to discounts vs. recent peaks, targeted rollbacks, or specific categories rather than across-the-board declines. Services (rent, insurance, etc.) have driven more of the remaining inflation.

•Perceptions vs. data: Many feel sticker shock from cumulative post-2020 increases. Shrinkflation (smaller packages) also plays a role in some categories but has a limited overall CPI impact.[13]

•International notes: Similar patterns appear elsewhere (e.g., UK shop price inflation eased to ~1.4% but still positive; furniture deflation in some markets).[14]

•Data is primarily US-centric (most relevant large retail market); trends can vary by country, region, store type (discount vs. premium), and exact timing. Latest full BLS/PCE figures should be checked for updates beyond August 2026.

In short, while inflation cooled and retailers cut/promoted heavily (especially goods), the typical store basket costs more than a year ago on average. For the most current figures, check BLS CPI releases or retailer announcements.

Citations (14)

1bls.govGovernment
https://www.bls.gov/cpi/latest-numbers.htm
Backs: “No, overall prices in stores are generally not lower than a year ago—they are higher on average, though the rate of increase has moderated significantly from peak inflation years, some categories/items have declined or stayed flat, and retailers have been aggressive with discounts and rollbacks.”
2bls.govGovernment
https://www.bls.gov/news.release/cpi.t01.htm
Backs: “Food at home (groceries): +2.2% YoY.”
3reuters.comNews and mediaquality 1.00
https://www.reuters.com/markets/us/us-inflation-rises-less-than-expected-august-consumer-spending-surges-2026-09-30/
Backs: “Related PCE (Personal Consumption Expenditures) data, the Fed’s preferred gauge, showed similar trends around +3.0–3.4% headline/core in recent months.”
4bls.govGovernment
https://www.bls.gov/opub/ted/2025/consumer-price-index-2024-in-review.htm
Backs: “Prices rose overall in 2024 (+2.9% all-items CPI Dec 2023–Dec 2024) and 2025 (+2.7%), with goods inflation lower than services (e.g., shelter).”
5bls.govGovernment
https://www.bls.gov/opub/ted/2026/consumer-price-index-2025-in-review.htm
Backs: “Prices rose overall in 2024 (+2.9% all-items CPI Dec 2023–Dec 2024) and 2025 (+2.7%), with goods inflation lower than services (e.g., shelter).”
6npr.orgNews and mediaquality 0.93
https://www.npr.org/transcripts/nx-s1-5241014
Backs: “Certain foods (e.g., dairy at times, eggs after avian flu peaks, some produce/meats) and items like salmon or bananas have seen declines in tracked shopping. Apparel and many packaged goods have risen.”
7retailbrew.comNews and media
https://www.retailbrew.com/stories/2024/12/18/2024-was-the-year-of-discounts-price-cuts-and-more-affordable-assortments
Backs: “Goods prices showed periods of near-zero or slight deflation earlier (e.g., nearly -1% for goods in mid-2024).”
8investopedia.comCommercial contentquality 0.93
https://www.investopedia.com/shoppers-could-be-seeing-lower-prices-this-holiday-season-8729096
Backs: “Goods prices showed periods of near-zero or slight deflation earlier (e.g., nearly -1% for goods in mid-2024).”
9wsj.comNews and mediaquality 0.80
https://www.wsj.com/business/retail/after-years-of-increases-companies-are-rolling-back-prices-b9d0a448
Backs: “Goods prices showed periods of near-zero or slight deflation earlier (e.g., nearly -1% for goods in mid-2024).”
10npr.orgNews and mediaquality 0.93
https://www.npr.org/2026/01/14/nx-s1-5638908/walmart-prices-inflation-affordability-shrinkflation
Backs: “Other trackers (e.g., local price patrols) have found baskets still higher YoY even after some dips.”
11cleveland.comNot yet classified
https://www.cleveland.com/news/2026/03/grocery-and-household-prices-in-2026-what-it-costs-now-vs-last-year.html
Backs: “Other trackers (e.g., local price patrols) have found baskets still higher YoY even after some dips.”
12cnbc.comNews and mediaquality 0.85
https://www.cnbc.com/2026/07/16/us-grocery-spending-slows-in-hit-to-food-companies.html
Backs: “Unit sales have softened in places even as dollar sales hold via inflation/promotions.”
13gao.govGovernment
https://www.gao.gov/products/gao-25-107451
Backs: “Shrinkflation (smaller packages) also plays a role in some categories but has a limited overall CPI impact.”
14retail-insight-network.comNews and media
https://www.retail-insight-network.com/news/uk-shop-price-inflation-eases-to-1-4-in-september/
Backs: “Similar patterns appear elsewhere (e.g., UK shop price inflation eased to ~1.4% but still positive; furniture deflation in some markets).”