Are prices lower in stores compared to a year ago?

On average, no, prices in stores are not lower than they were a year ago.

According to the U.S. Bureau of Labor Statistics (BLS), overall consumer prices rose by 3.7% year-over-year. While this is a slower pace of growth compared to peak inflation years, it means that a broad basket of goods and services is still more expensive than it was last year.

However, store pricing is highly unequal depending on what you are buying. Below is a breakdown of what is actually cheaper, what is more expensive, and why shopping bills still feel high.

1. In the Grocery Store (Food at Home)

The overall index for groceries ("food at home") rose 1.8% year-over-year. While your total grocery bill is likely slightly higher, this is a "mixed bag" category because several individual staples have actually dropped in price:

•What got cheaper: The biggest drops came from items that suffered major supply shocks in previous years.

•Eggs: Down 34.9% (averaging $2.27 a dozen, down from $3.49 a year ago).

•Bacon: Down 7.3%.

•Ice Cream: Down 7.3%.

•Iceberg Lettuce: Down 5.5%.

•Potato Chips: Down 4.3%.

•What keeps climbing: Other staples continue to push your bill upward.

•Ground Beef: Up 7.4%.

•White Rice: Up 5.5%.

•Coffee: Up 2.1%.

2. Retail, Clothing, and Tech

If you are shopping in department stores or electronics retailers, you are generally paying more than you were a year ago:

•Apparel (Clothing): Clothing prices are up 3.37% compared to last year.

•Technology & Electronics: Tech goods have seen firm upward price pressures, driven in part by supply chain shifts and the ongoing tech boom. Computers (up 1.4% month-over-month) and smartphones are notably more expensive.

•Household Furnishings: This is one of the few retail categories that has remained relatively flat or slightly down, offering minor relief for those buying furniture or appliances.

3. Energy and Transportation (The Hidden Store Cost)

Even if you find deals inside the store, getting there is more expensive.

•Gasoline: Gas prices have jumped significantly, up 34.2% year-over-year, which represents a massive burden on household budgets and also drives up the shipping costs for the stores themselves.

Why doesn't it feel like prices are getting better?

Shoppers often ask why their receipts still feel incredibly high if "inflation is cooling."

It is important to distinguish between disinflation (prices rising more slowly) and deflation (prices actually falling). When economists say inflation has cooled, it does not mean prices are going back down to pre-pandemic levels; it just means they are climbing at a slower, more normal speed. Because today's prices are stacked on top of several years of heavy, consecutive increases, a trip to the store still feels significantly more expensive than it did a few years ago.

Citations (10)

1foodtradenews.comNews and media
foodtradenews.com
Backs: “On average, no, prices in stores are not lower than they were a year ago.”
2horusvalley.comNot yet classified
horusvalley.com
Backs: “According to the U.S. Bureau of Labor Statistics (BLS), overall consumer prices rose by 3.7% year-over-year.”
3in2013dollars.comData and tools
in2013dollars.com
Backs: “According to the U.S. Bureau of Labor Statistics (BLS), overall consumer prices rose by 3.7% year-over-year.”
4thethirdpocket.comNot yet classified
thethirdpocket.com
Backs: “Below is a breakdown of what is actually cheaper, what is more expensive, and why shopping bills still feel high.”
5usinflationcalculator.comData and tools
usinflationcalculator.com
Backs: “In the Grocery Store (Food at Home). The overall index for groceries ("food at home") rose 1.8% year-over-year.”
6retaildive.comNews and media
retaildive.com
Backs: “Retail, Clothing, and Tech. If you are shopping in department stores or electronics retailers, you are generally paying more than you were a year ago:”
7ey.comCompanies
ey.com
Backs: “Retail, Clothing, and Tech. If you are shopping in department stores or electronics retailers, you are generally paying more than you were a year ago:”
8ycharts.comData and tools
ycharts.com
Backs: “Retail, Clothing, and Tech. If you are shopping in department stores or electronics retailers, you are generally paying more than you were a year ago: Apparel (Clothing): Clothing prices are up 3.37% compared to last year.”
9pbs.orgNews and mediaquality 0.87
pbs.org
Backs: “Household Furnishings: This is one of the few retail categories that has remained relatively flat or slightly down, offering minor relief for those buying furniture or appliances.”
10bls.govGovernment
bls.gov
Backs: “Household Furnishings: This is one of the few retail categories that has remained relatively flat or slightly down, offering minor relief for those buying furniture or appliances.”