The turf war between major retailers in Canada is paying off for consumers, says an article in today’s Globe and Mail. As food prices around the world soar, Canadians are enjoying food deflation as competition for market share amongst Canada’s big grocers intensifies.

Food from grocery stores was 0.6 per cent cheaper in February than a year ago – a stark divergence from the United States, where food prices are rising at 4 per cent a year, and China, where they soared 21 per cent in the first quarter.

Canada’s stronger dollar is playing a role in keeping some food prices down for consumers, especially imported fruits and vegetables, analysts say. But consumers are benefiting primarliy from intense competition between supermarkets, which began heating up when Wal-Mart began introducing its Supercentre stores with full grocery aisles in late 2006.

View the Globe and Mail article.