Shoppers to have more spare cash as grocery bills fall

Grocery bills look set to fall after a supermarket chain agreed to end store price variations.

Coles has announced that its products will now cost the same across all of its 151 Queensland locations, the Courier Mail reported.

Following the announcement, Woolworths said it was also trying to introduce postcode-free prices.

The changes come into effect on February 1st and will mean that shoppers in wealthy areas will no longer have to pay a premium.

Christopher Zinn, a spokesman for the consumer advocacy group Choice, told the newspaper: "Unlike things like fuel discount schemes and free DVDs, this is much more significant than the usual gimmicks the big supermarkets use to gain market share."

The news may encourage shoppers to compare credit cards as their spending power improves. Last week, the Reserve Bank of Australia announced that credit card spending in November last year was at its highest level since December 2008.

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