This case happened in Hong Kong. The SRP of 18-55mm kit set is about USD 933 initially. Then the 1st price dropped on OCT to USD$895. 6 weeks later (Nov 26), it dropped to USD$857.
From some of the source that the sales rate is suppressed by the low cost strategy of Olympus EP-L1 and Sony NEX series. I believe mirrorless is really eroding DSLR market, especially the entry level.
So far, I see nothing that Canon is able to fight back. Price war can't last long or she must create some smaller body or lower spec entry level camera. I think Canon can't till 2012 for fighting back.