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 inflation has cooled substantially from its peaks, goods (especially certain categories) have seen more stability or declines, and retailers have increased discounts and promotions.[1]

U.S. Consumer Price Index (CPI) data from the Bureau of Labor Statistics provides the clearest broad measure:

Category Variations

Prices are mixed by item:

Earlier periods (notably much of 2024) showed even clearer goods deflation or stability in places. Retailers like Walmart, Target, and others actively cut prices on thousands of items (“rollbacks”), and analyses of shopping baskets (e.g., NPR’s Walmart tracking) found average tracked prices up only slightly (~0.7% in one 2024 comparison), with many items flat or cheaper amid heavy promotions. Goods prices were reported down nearly 1% YoY in some mid-2024 months per PCE data. UK shop price indexes also entered deflation at points.[6]

Retailer Behavior and Shopper Experience

Retailers have prioritized affordability through promotions, targeted discounts, private-label options, and value assortments to combat consumer sensitivity after earlier high inflation. Sales data show continued spending but with a focus on essentials and deals. Individual store experiences vary by location, chain, promotions, package sizes (shrinkflation can affect unit prices), and what you buy—some holiday baskets or specific carts have been cheaper due to seasonal deals or item selection.[7]

Cumulative context matters: Prices remain well above pre-2021/2022 levels (food-at-home cumulative gains often 20%+ since then), so even modest recent increases feel significant, and absolute levels haven’t fully reversed prior jumps.[8]

In short, broad store prices (especially a typical grocery basket) are higher than a year ago per official indexes, but the gap is smaller than during peak inflation, goods are relatively better behaved, and active discounting means shoppers can often find lower prices on specific items or through deals. Check current local prices, unit costs, and sales for the most relevant comparison, as averages mask variation. Data can shift monthly with energy, supply chains, and other factors.