Are prices lower in stores compared to a year ago?

Short answer: No, overall prices are higher than a year ago — not lower.

The U.S. is still experiencing inflation, meaning prices in stores are generally higher, not lower, than they were 12 months ago. As of the most recent data:

Overall inflation

The US annual inflation rate accelerated to 3.7% in September 2026, up from 3.4% in each of the previous two months. This means the general cost of goods and services is about 3.7% higher than a year ago.

Groceries specifically

Grocery prices are also higher overall, though the increase has slowed:

•Overall, grocery prices dropped 0.1% on a seasonally adjusted basis last month, leaving them 1.8% higher than a year earlier.

•Importantly, grocery prices are rising more slowly, but groceries are not getting cheaper overall. The U.S. food-at-home price index was unchanged in August 2026 and stood 2.2% above its August 2025 level.

What's gone down vs. up

It's a mixed bag — while the overall basket costs more, some specific items are cheaper:

Cheaper than a year ago:

•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.

•Butter prices plunged 10.3% last month compared to a year earlier, while prices for ice cream, milk and cheese each fell more than 2% over that period.

•The cooldown in meat prices hit a range of products, including bacon, which costs 3.3% less than it did a year ago.

More expensive than a year ago:

•The biggest rise: regular gas, $4.30 against $3.07 a year ago (+40.0%)

•Ground beef rose from $6.32 to $6.79 per pound (+7.4%), and electricity rose from 18.8¢ to 19.6¢ per kWh (+4.3%)

•Mortgage rates are also up sharply, with the 30-year fixed mortgage rate rising from 6.19% to 7.32% (+18.3%)

Bottom line

As one analysis put it: An inflation rate of 2.2% means prices are increasing more slowly than they were during the worst of the food-price surge. It does not mean the earlier increases have been erased. So while the pace of price increases has cooled compared to the 2022 peak, prices themselves are still climbing — you're paying more at checkout than you were a year ago, even if certain items like eggs, butter, and some dairy have gotten cheaper.

Citations (9)

1tradingeconomics.comData and tools
United States Inflation Rate
Source excerpt: “The US annual inflation rate accelerated to 3.7% in September 2026, up from 3.4% in each of the previous two months and above market expectations of 3...”
statistic, data page, points to no. Claim: US annual inflation rate accelerated to 3.7% in September 2026, up from 3.4% in each of the previous two months.
2abcnews.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...”
statistic, article, points to no. Claim: Grocery prices dropped 0.1% last month on a seasonally adjusted basis but remain 1.8% higher than a year earlier.
3foodtradenews.comNews and media
Are Groceries Getting Cheaper? Why Your Bill May Say Otherwise - Food Trade News & Food World
Source excerpt: “- Grocery prices are rising more slowly, but groceries are not getting cheaper overall. The U.S. food-at-home price index was unchanged in August 2026...”
evidence, article, points to no. Claim: Grocery prices are rising more slowly, but groceries are not getting cheaper overall; food-at-home index unchanged in August 2026, 2.2% above year earlier.
4abcnews.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....”
statistic, article, points to yes. Claim: Egg prices fell more than 20% over the year ending in September, recovering from a bird flu shortage.
5abcnews.comNews and mediaquality 0.67
Which grocery prices are rising the fastest and which are falling? - ABC News
Source excerpt: “Butter prices plunged 10.3% last month compared to a year earlier, while prices for ice cream, milk and cheese each fell more than 2% over that period...”
statistic, article, points to yes. Claim: Butter prices fell 10.3% year over year, while ice cream, milk and cheese each fell more than 2%.
6abcnews.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. ”
statistic, article, points to yes. Claim: Meat price cooldown included bacon, which costs 3.3% less than a year ago.
7thedollarmap.comNot yet classified
October 2026 Price Report: What Everyday Costs Did
Source excerpt: “The biggest rise: regular gas, $4.30 against $3.07 a year ago (+40.0%). ”
statistic, data page, points to no. Claim: Regular gas rose to $4.30 from $3.07 a year ago, a 40.0% increase.
8thedollarmap.comNot yet classified
October 2026 Price Report: What Everyday Costs Did
Source excerpt: “| Item | Latest | Year ago | Change | As of | Source | | --- | --- | --- | --- | --- | --- | | Regular gas, per gallon | $4.30 | $3.07 | +40.0% | Oct ...”
statistic, data page, points to no. Claim: Ground beef, electricity and mortgage rates are up from a year ago, per the price table.
9foodtradenews.comNews and media
Are Groceries Getting Cheaper? Why Your Bill May Say Otherwise - Food Trade News & Food World
Source excerpt: “* An inflation rate of 2.2% means prices are increasing more slowly than they were during the worst of the food-price surge. It does not mean the earl...”
attribution, article, points to no. Claim: A 2.2% inflation rate means prices rise more slowly than at the food-price surge peak, but earlier increases are not erased.