"Competition is a key reason for an expected moderation in Canada. Wal-Mart Canada is opening new super-centres next year, while Target is planning on entering the Canadian market in 2013. Both moves are expected to put pressure on Canada’s existing grocers – Loblaw, Sobeys and Metro – to trim prices to hang on to market share."
Grocery store wars expected to cool food prices - Globe and Mail
The University of Guelph predicts that food prices will increase at about 2%, compared to the inflation of 4.3%. This moderation of price comes from increased competition, and not because of a reduction in feed/production costs.
This is great news for the Grocery Goblin! Grocery Goblin spends well over the average 10% of household expenses that other Canadians spend on groceries.