Are prices lower in stores compared to a year ago?

Short answer: Mostly no — overall prices are still higher than a year ago, though a handful of specific items have gotten cheaper.

Overall inflation is still running above the Fed's target: The annual inflation rate in the United States was 3.7% for the 12 months ending September, up from 3.4% in August, according to U.S. Labor Department data released October 14, 2026. That's a reacceleration — the Consumer Price Index (CPI) reaccelerated to an annualized 3.7% in September, and the Cleveland Fed's inflation tool predicts further acceleration to 3.77% in October, largely due to rapidly rising fuel costs, caused by the ongoing closure of the Strait of Hormuz.

Groceries: a mixed, but slightly higher, picture. Overall, grocery prices dropped 0.1% on a seasonally adjusted basis last month, leaving them 1.8% higher than a year earlier, U.S. Bureau of Labor Statistics (BLS) data showed. Within that broad category, though, there's real divergence:

Items that are cheaper than a year ago:

•Egg prices plummeted more than 20% over the year ending in September, and butter prices plunged 10.3% compared to a year earlier, while ice cream, milk and cheese each fell more than 2%.

•Bacon costs 3.3% less than it did a year ago.

•A local grocery price tracker found a grocery basket roughly 3.6% lower than last year at the same time, with egg prices still nearly 40% cheaper than last year, and orange juice, bacon, and coffee also down compared to last year.

Items still costing more:

•Meat prices were 1.3% higher than a year earlier, and chicken prices, though falling in September, still stand 1.3% higher than a year ago.

•Earlier in the year, ground beef rose from $5.55 to $6.75 a pound, a 21.8% increase, and banana prices rose 5.2%, and cheese 5.0%.

•Restaurant/menu prices are up more: menu prices were up 3.5% in September compared with a year earlier.

Bottom line: Across the board, headline prices (CPI) and most grocery categories remain higher than a year ago, so in that broad sense, no — stores aren't cheaper overall. However, a notable subset of specific items — especially eggs, butter, bacon, cheese, milk, and ice cream — have genuinely dropped in price year-over-year, giving some shoppers real relief even as other items like beef, tomatoes, and coffee have kept climbing. Consumer sentiment reflects this frustration: U.S. consumer sentiment edged down to a five-month low in October as high prices and rising interest rates depressed morale.

Citations (15)

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Current U.S. Inflation Rates: 2000-2026
Source excerpt: “The annual inflation rate in the United States was 3.7% for the 12 months ending September, up from 3.4% in August, according to U.S. Labor Department...”
2fool.comCommercial contentquality 0.84
The Federal Reserve's Latest October Inflation Forecast Has Arrived, and It's Terrible News for Wall Street
Source excerpt: “For starters, we know the Consumer Price Index (CPI) reaccelerated to an annualized 3.7% in September. ”
3fool.comCommercial contentquality 0.84
The Federal Reserve's Latest October Inflation Forecast Has Arrived, and It's Terrible News for Wall Street
Source excerpt: “The Cleveland Fed's inflation tool predicts further acceleration to 3.77% in October. ”
4fool.comCommercial contentquality 0.84
The Federal Reserve's Latest October Inflation Forecast Has Arrived, and It's Terrible News for Wall Street
Source excerpt: “Rapidly rising fuel costs, caused by the ongoing closure of the Strait of Hormuz, likely explain why headline inflation is heading higher. ”
5abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “Overall, grocery prices dropped 0.1% on a seasonally adjusted basis last month, leaving them 1.8% higher than a year earlier, U.S. Bureau of Labor S...”
6abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “Egg prices plummeted more than 20% over the year ending in September, indicating continued recovery from a shortage caused by an outbreak of bird flu....”
7abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “The cooldown in meat prices hit a range of products, including bacon, which costs 3.3% less than it did a year ago. ”
8wreg.comNews and mediaquality 0.63
Price Tracker September 2026: Grocery basket totals drop slightly from last month
Source excerpt: “It’s not a huge difference from August, but it’s roughly 3.6% lower than last year this time and the 7th cheapest since we started the WREG Price Trac...”
9wreg.comNews and mediaquality 0.63
Price Tracker September 2026: Grocery basket totals drop slightly from last month
Source excerpt: “Our average across Kroger, Walmart, and Target was $1.72, but that price is still nearly 40% cheaper than last year’s price at this same time. Orange...”
10abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “Meat prices, for instance, dipped 0.9% in September, putting them 1.3% higher than a year earlier. ”
11abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “Chicken prices fell in September, though they still stand 1.3% higher than a year ago. ”
12usafacts.orgData and toolsquality 0.91
Are groceries more expensive than last year?
Source excerpt: “Out of nine grocery staples defined by the BLS, the cost of a pound of ground beef rose the most between 2025 and 2026, from $5.55 to $6.75, a 21.8% i...”
13usafacts.orgData and toolsquality 0.91
Are groceries more expensive than last year?
Source excerpt: “Bananas and cheese also went up more than the 2.1% average; banana prices rose 5.2%, and cheese 5.0%. ”
14restaurant.orgNonprofits and think tanks
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Source excerpt: “Compared with a year earlier, menu prices were up 3.5% in September. ”
15spokesman.comNews and mediaquality 0.84
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Source excerpt: “U.S. consumer sentiment edged down to a five-month low in October as high prices and rising interest rates depressed morale. ”