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. Instead, they have continued to rise, meaning most items in retail and grocery stores are more expensive today than they were in late 2025.

Data from the U.S. Bureau of Labor Statistics (BLS) and the Commerce Department outlines how prices compare to last year:

1. Overall Inflation is Still Rising

According to the Consumer Price Index (CPI) report, headline inflation rose 3.7% year-over-year. This means that across the entire economy, a dollar buys less today than it did last year.

2. Grocery Store Prices (Food at Home)

If you are shopping for groceries, your total bill is likely higher than last year, though the rate of price increases has slowed compared to the rapid spikes seen in 2022–2023:

•Overall Grocery Costs: The "food at home" (supermarket) index rose 1.8% over the past year.

•What is more expensive: Items like fresh fruits and vegetables (up 3.7%), cereal and bakery products (up 2.1%), and sugar and sweets have continued to climb.

•What is cheaper: There are a few select categories where prices dropped slightly. Dairy and related products fell 0.7% over the year, and retail eggs declined significantly compared to their avian-flu-driven peaks in early 2025.

3. Retail Goods (Clothing, Cars, and Electronics)

For non-grocery store items, price changes vary by category, but overall "core goods" are still creeping upward:

•Apparel (Clothing): Apparel prices rose 3.4% compared to last year.

•New Vehicles: Up 0.6% year-over-year.

•Used Cars and Trucks: This is one of the few major categories where prices have actually dropped, falling 1.5% over the past year.

•Medical Commodities (like prescription drugs): Down 3.3% year-over-year.

Why are prices still high?

Store prices remain elevated due to a combination of compounding factors:

•Energy Shocks: Global energy prices spiked dramatically over the past year, driving up transportation and shipping costs for retailers. Higher diesel and gasoline prices directly affect how much it costs to deliver goods to store shelves.

•Tariffs: Historically high average tariff rates of 10% to 13% on imported goods have forced many companies to pass these extra import taxes directly onto consumers.

Summary

While the pace of inflation has cooled off significantly from its post-pandemic peaks, we are experiencing disinflation (prices rising at a slower speed) rather than deflation (prices actually falling). Aside from a few specific categories like used cars and dairy, expect to pay more at checkout lines today than you did a year ago.

Citations (7)

1in2013dollars.comData and tools
in2013dollars.com
Backs: “On average, no, prices in stores are not lower than they were a year ago. Instead, they have continued to rise, meaning most items in retail and grocery stores are more expensive today than they were in late 2025.”
2ey.comCompanies
ey.com
Backs: “On average, no, prices in stores are not lower than they were a year ago. Instead, they have continued to rise, meaning most items in retail and grocery stores are more expensive today than they were in late 2025.”
3advisorperspectives.comNews and media
advisorperspectives.com
Backs: “According to the Consumer Price Index (CPI) report, headline inflation rose 3.7% year-over-year.”
4grocerytradenews.comNews and media
grocerytradenews.com
Backs: “If you are shopping for groceries, your total bill is likely higher than last year, though the rate of price increases has slowed compared to the rapid spikes seen in 2022–2023: Overall Grocery Costs: The "food at home" (supermarket) index rose 1.8% over the past year.”
5bls.govGovernment
bls.gov
Backs: “Overall Grocery Costs: The "food at home" (supermarket) index rose 1.8% over the past year.”
6vimwealthmanagement.comNot yet classified
vimwealthmanagement.com
Backs: “Overall Grocery Costs: The "food at home" (supermarket) index rose 1.8% over the past year.”
7nbcnews.comNews and mediaquality 0.84
nbcnews.com
Backs: “Tariffs: Historically high average tariff rates of 10% to 13% on imported goods have forced many companies to pass these extra import taxes directly onto consumers.”