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 some specific items have decreased and retailers have increased discounts/promotions.[1]

Latest Official Data (US, as of August 2026)

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

•All items: +3.4% year-over-year (YoY).[1]

•Food (overall): +2.7% YoY.[2]

•Food at home (groceries/store food): +2.2% YoY (unchanged month-over-month in August).[3]

•Energy: +16.3% YoY, with gasoline (all types) +27.4% YoY.[4]

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

•Commodities less food and energy: +0.7% YoY.[2]

Gas prices provide a clear store/pump example: The national average for regular gasoline recently hovered around $4.30–$4.35/gallon (as of mid-October 2026), compared to roughly $3.08 a year earlier (up ~$1.25–$1.28/gallon or ~40%).[5]

Grocery and Retail Details

•Grocery inflation has moderated significantly from the peaks of 2021–2023 but remains positive. Categories vary widely: dairy slightly down (–0.3%), eggs sharply lower (around –23% YoY after earlier avian flu spikes), while beef/veal, nonalcoholic beverages, fruits/vegetables, and others are up.[3]

•Other household/everyday goods track similar modest increases (e.g., ~2.1% YoY in some retail trackers).[6]

•Some non-food goods have seen declines or stability (e.g., used cars/trucks –2.3%, medical care commodities –2.7%).[4]

Retailers (Walmart, Target, etc.) actively cut prices on thousands of items and ramped up promotions/discounts in 2024–2025 amid cooler inflation and consumer pushback, which helped keep goods inflation low or slightly negative in periods. However, this has not translated to broad deflation in shelf prices versus a year ago.[7]

Context and Caveats

•Cumulative effect: Prices remain substantially higher than pre-pandemic levels (food at home up ~30–33% since early 2020). Many shoppers notice this more than the recent milder YoY changes.[8]

•Variation by item/location: Your experience depends on what you buy (e.g., eggs or certain produce may feel cheaper; beef, coffee, or gas more expensive) and where you shop (discounters vs. premium stores). Shrinkflation (smaller packages at similar prices) has also played a role historically.

•International notes: Trends differ elsewhere (e.g., some UK shop-price deflation earlier; recent UK grocery inflation around +2.5%). Data here focuses on the US as the primary available benchmark.[9]

•Outlook: USDA forecasts modest further grocery increases (~2.4% for food-at-home in 2026). Energy remains volatile due to geopolitical factors.[10]

In summary, while inflation has cooled a lot from its peaks and some store items + promotions offer relief, the data shows prices are higher on average than a year ago, not lower. Check current local prices or BLS/AAA trackers for the most up-to-date specifics, as figures can shift monthly.

Citations (10)

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 modestly higher on average, though some specific items have decreased and retailers have increased discounts/promotions.”
2bls.govGovernment
https://www.bls.gov/news.release/cpi.t01.htm
Backs: “Food (overall): +2.7% YoY.”
3illinois.eduAcademic
https://farmdocdaily.illinois.edu/2026/10/food-inflation-and-the-outlook-for-beef-prices.html
Backs: “Food at home (groceries/store food): +2.2% YoY (unchanged month-over-month in August).”
4bls.govGovernment
https://www.bls.gov/news.release/charts/cpi-cpi_rc_1cpibycat.stm
Backs: “Energy: +16.3% YoY, with gasoline (all types) +27.4% YoY.”
5aaa.comNonprofits and think tanks
https://gasprices.aaa.com/?premiumhtml5map_get_
Backs: “The national average for regular gasoline recently hovered around $4.30–$4.35/gallon (as of mid-October 2026), compared to roughly $3.08 a year earlier (up ~$1.25–$1.28/gallon or ~40%).”
6supermarketnews.comNews and media
https://www.supermarketnews.com/grocery-trends-data/price-for-household-purchases-rises-in-september
Backs: “Other household/everyday goods track similar modest increases (e.g., ~2.1% YoY in some retail trackers).”
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: “However, this has not translated to broad deflation in shelf prices versus a year ago.”
8americandefault.orgNonprofits and think tanks
https://americandefault.org/statistics/grocery-price-increase-since-2020/
Backs: “Many shoppers notice this more than the recent milder YoY changes.”
9express.co.ukNot yet classified
https://www.express.co.uk/finance/personalfinance/2256736/grocery-price-inflation-rises-uk
Backs: “Data here focuses on the US as the primary available benchmark.”
10usda.govGovernment
http://www-tx.ers.usda.gov/data-products/food-price-outlook/summary-findings
Backs: “USDA forecasts modest further grocery increases (~2.4% for food-at-home in 2026). Energy remains volatile due to geopolitical factors.”