Increased Competition Keeps Arizona Grocery Prices Low

Arizona is becoming more of a shopper's market as extreme competition among supermarket chains drives down costs for consumers.

Food prices in the state dropped almost 5 percent over the past three months as grocers, battling for dollars and a larger share of the market, worked to lure shoppers with coupons, cash rebates and lower base prices.

Although prices are forecast to rise slightly before year's end, the deals likely will continue to flow as more supermarket chains enter the market.

The Arizona Farm Bureau Federation monitors food prices and reports its findings quarterly in its Market Basket Survey.

It reported Monday that a basket of 16 grocery staples now costs $2.36 less than it did three months ago. The third-quarter drop in Arizona food prices ended two straight quarters of increases after a year of declines.

To read the rest of the story, please go to: The Arizona Republic (Phoenix, AZ).