Consumers cashing in as supermarkets step up price war

Australian consumers have been given a boost as the nation's biggest supermarkets step up their price war.

Just a few days ago figures published by the Bureau of Statistics revealed that the cost of living for working families and pensioners has now overtaken the consumer price index (CPI).

However, now those struggling the most have been given at least a little good news as both Coles and Woolworths have announced a range of price cuts, potentially meaning savvy consumers who compare debit cards and shop around for the best deals are able to save small but significant sums on their weekly groceries.

More specifically, the supermarkets are battling it out to attract consumers by cutting the cost of milk, as well as bathroom staples such as toilet paper.

Commenting on the developments, Wesfarmers chief executive Richard Godyer told the Daily Telegraph that the fall in milk prices mirrors an overall drop in food price inflation, with this down from four to two per cent over the past couple of years.

"That's saving Australians significant amounts of money, as in a billion dollars a year or thereabouts," he said.

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