Are prices lower in stores compared to a year ago?

No, on average, prices in stores are not lower compared to a year ago. Prices across most retail and grocery sectors have continued to rise, meaning most store-bought items are more expensive today.

According to the latest Consumer Price Index (CPI) data from the Bureau of Labor Statistics, overall inflation rose 3.7% year-over-year. However, the picture varies depending on what type of store you are shopping in and what you are buying:

1. Grocery Stores (Food-at-Home)

If you are buying groceries, you are generally paying more than you were last year. The food-at-home index rose 1.8% over the past year.

•What is more expensive: Fruits and vegetables (up 3.7%), non-alcoholic beverages (up 3.8%), and cereals/bakery products (up 2.1%) have all risen over the year.

•What is cheaper: There are some notable exceptions where prices have dropped. Dairy and related products fell 0.7% overall compared to last year. Specifically, items like butter (down roughly 17%), sliced bacon (down over 7%), and whole milk (down nearly 1%) have seen year-over-year decreases. Egg prices are also forecast to finish the year significantly lower than they were during the spikes of the previous year.

2. Retail and Discretionary Stores

Prices for non-grocery retail goods are a mixed bag, but many discretionary categories have also climbed:

•Discretionary Goods: Toy prices saw a significant monthly jump of 4.2% in the fall, driven in part by import tariffs. Prices for shoes, sporting goods, and cars have also risen rapidly.

•Electronics: Tech-related retail is notably more expensive. Driven by high demand for silicon and enterprise AI infrastructure, computers and peripheral equipment prices rose 9.7% over the past year.

Why are prices still rising?

Retail prices continue to be pushed higher by a few key macroeconomic factors:

•Energy and Shipping Costs: Energy and gasoline costs have surged dramatically (gasoline is up 34.2% over the last year). Because it costs more to transport goods to stores, retailers are passing those shipping costs on to consumers.

•Tariffs and Supply Bottlenecks: Continued trade tariffs on imported goods have kept prices elevated for certain manufactured retail products.

While you may find select deals on dairy, pork, or apparel, your overall receipt at checkout is highly likely to be higher than it was at this time last year.

Citations (8)

1bls.govGovernment
bls.gov
Backs: “No, on average, prices in stores are not lower compared to a year ago.”
statistic, official document, points to no. Claim: Overall inflation rose 3.7% year-over-year, so store prices are not lower on average than a year ago.
2cnn.comNews and mediaquality 0.66
cnn.com
Backs: “No, on average, prices in stores are not lower compared to a year ago.”
evidence, article, points to no. Claim: On average, prices in stores are not lower compared to a year ago.
3cbsnews.comNews and mediaquality 0.88
cbsnews.com
Backs: “Specifically, items like butter (down roughly 17%), sliced bacon (down over 7%), and whole milk (down nearly 1%) have seen year-over-year decreases.”
statistic, article, points to yes. Claim: Butter, sliced bacon and whole milk have seen year-over-year price decreases (butter down ~17%, bacon over 7%, milk nearly 1%).
4usda.govGovernment
usda.gov
Backs: “Egg prices are also forecast to finish the year significantly lower than they were during the spikes of the previous year.”
evidence, official document, points to yes. Claim: Egg prices are forecast to finish the year significantly lower than during last year's spikes.
5clarin.comNews and media
clarin.com
Backs: “Retail and Discretionary Stores. Prices for non-grocery retail goods are a mixed bag, but many discretionary categories have also climbed: Discretionary Goods: Toy prices saw a significant monthly jump of 4.2% in the fall, driven in part by import tariffs.”
statistic, article, points to no. Claim: Toy prices jumped 4.2% in a month in the fall, driven partly by import tariffs.
6pbs.orgNews and mediaquality 0.87
pbs.org
Backs: “Prices for shoes, sporting goods, and cars have also risen rapidly.”
evidence, article, points to no. Claim: Prices for shoes, sporting goods, and cars have also risen rapidly.
7forbes.comNews and mediaquality 0.83
forbes.com
Backs: “Retail prices continue to be pushed higher by a few key macroeconomic factors: Energy and Shipping Costs: Energy and gasoline costs have surged dramatically (gasoline is up 34.2% over the last year).”
statistic, article, points to no. Claim: Energy and gasoline costs surged, with gasoline up 34.2% over the last year, pushing retail prices higher.
8facebook.comSocial media and video
facebook.com
Backs: “Because it costs more to transport goods to stores, retailers are passing those shipping costs on to consumers.”
evidence, social or video, points to no. Claim: Higher transport costs lead retailers to pass shipping costs on to consumers.