Oh, there's pretty high markup in the states, too, it's just kinda' universal. With rural areas, they often have to pay more because they stuff they offer costs the local business more to
get them (and they usually don't have the economic weight to put the screws to transport et al services, which the larger chains can and do), and still have to have some degree of markup to keep things running/make a profit.
S'like... as a simple example, there's what I'd classify as a mild luxury food I'm fond of -- a
particular brand of microwavable chow mein that sells for about 20 cent to the ounce at its cheapest -- that costs upwards to 25 cent more (~.87 vs ~1.15 at its worst) per container in the local stores than it does at the walmart a dozen and bit miles away.
This is only
slightly excessive beyond the norm, and there's very few goods you'll find at an equal price under normal circumstances, from what I've seen. Transit costs are also a pretty big issue, as local/rural gas stations are usually
significantly more expensive than more urban ones -- we're talking 20-30 cent/gallon price differences between stations ~twenty minutes apart...
As for the city thing, m'not personally comfortable giving out specific information like that, heh -- force of habit as much as anything. If it helps any to get the info from here, though, I'm in a rural town with a population of about 500, iirc -- the nearest thing one might call a city is about an hour's drive away, though there's a walmart and a harvey's (think mildly smaller win-dixie, which is apt considering the latter recently-ish bought 'em) amount twenty minutes out.