Report: Food price war hurting supermarkets, creating bargains

SYRACUSE, N.Y. (WSYR-TV) - Prices on supermarket items dropped last year for the first time since 1967 – and while the decline in prices is creating bargains for consumers, it’s damaging profits for supermarkets that are already struggling to compete with Walmart and online vendors.

Supermarket item prices declined 1.3 percent last year, according to a report in USA Today citing the Agriculture Department's Economic Research Service.

Popular Upstate New York chain Wegmans saw prices drop on dozens of key items, including beef, dairy, and eggs.

Costco also reportedly dropped prices on numerous items in an effort to compete in the price war.

Costco CFO Richard Galanti told USA Today that price deflation was to blame.

Oversupply and fewer exports have caused the cuts to meat, chicken, and eggs.

Additional details are available on USA Today’s website.

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