I have NEVER seen anything at Aldi that is more expensive than Kroger. And Kroger is far less expensive than the price controlled grocery stores in this town. Milk at Kroger here is $3 and change at Kroger, at the local stores here a gallon of milk is over $4 all of the time, and the Walmart keeps their prices just a few cents less than the local grocery stores on similar items. So if the milk at the local store is $4.28, Walmart will be $4.19. When the Aldi just North of me had milk gallons for $.99 (4 years in a row), the Walmart across the street from them couldn't compete directly, but they marked down their gallons of milk to $1.39 per gallon.
Groceries are not priced by what they cost. They are priced by what the market will bear. The cost of the items has no relevance to what we pay for the items at the store. The same beef that we are paying $5.00 or more per lb for here in AL is $2 or $3 per lb in CA and TX. The pink slime ground beef in the chubs at ALL of the Walmarts and Krogers here is $4 - $5 per lb. The 3 lb. "fluff" packs of ground beef we are supposed to check on the shops here are regularly $14 - $15, and sometimes they go on sale for $12.
I would LOVE to get CA meat prices here, I'd love TX meat prices even better. lol