Assuming your data is something like this:
You can set up a Matrix object to display something similar to your requirements:
Here I dragged City
and Item
into the Matrix row and column field respectively, then added another Row Group based on Category
and a Column Group based on Date
.
The end result is practically the same as your requirement:
The big caveat here is that SSRS 2005 offers very limited options for customising a Matrix, i.e. things like adding new columns, but you can see the example report is pretty close so this is worth considering.