There was also a recent study that showed grocery bills in NYC were actually less expensive than most other metro areas. I've noticed the same thing after moving from Brooklyn to the middle of nowhere. I paid less at Fairway than I do here, and Fairway had a much better selection.
Anecdotally, I recently took a road trip across the southwest and Fairway was cheaper than similar stores in Tucson, Flagstaff, Moab and Boulder. In Minneapolis things got cheap again but in Northern MN/ND they are about the same (as NYC).