They may have had more room to fall in your area (IE: the chains there may have been used to screwing local consumers). In my area, the groceries all have pretty much held the line, except that certain individual items seem to be constantly discounted.
Examples of prices I generally see:
Store brand Kroger's moloko-plus (milk

) - usually 5 1/2 gal for $6 or 1 gal for $1.88. (sale prices but perpetually on sale - BTW, screw dairy farmers who have to make a living

)
Bananas .39 - .46 / lb
Store brand hot dog or burger buns $1 a package of 8
Greenleaf lettuce $1.99/lb
Broccoli 3 for $5 or $1.66/bunch
Cauliflower $1.99/bunch
Stouffer's individual frozen entrees - reg price $2.79 or something stupid like that, sale price 5 for $11 or $2/apiece
It hasn't changed much in 6-8 months. Last winter grocery prices eased from some all time highs commensurate with the increase in oil prices.
Ah, and in my town, a long planned Aldi's just opened up across the hiway from Kroger. So they must have seen clear opportunity even now.