Food prices in the US are lower than last year

Food prices have fallen for nine straight months in the U.S. It’s the longest streak of food deflation since 1960, thanks to low oil and grain prices.

Another reason grocery prices are falling is the increased competition from grocery discounters like Aldi the German supermarket discounter, which has big plans for the US market. This year they opened many supermarkets in California, and will continue to add stores in the US. Lidl, another German supermarket discounter has also plans to open stores in the US by 2018.

Kroger, the largest grocery store chain in the U.S., with nearly 2,900 stores, has also cut prices to compete with Wal-Mart and increase its market share.