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    VIDEO: Coles drops prices but warns of inflation

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      Coles has announced a huge move on its pricing, locking the cost of more than 1100 popular products and lowering the price of 500 more household essentials until 2023.

      The measure was revealed just hours after Woolworths announced a season-long price drop of more than 400 grocery staples.

      Sounds like good news for Aussies struggling with cost of living pressures - but what does it actually mean for our grocery bills?

      Today the supermarket groups full-year earnings showed food inflation surged to 4.3% in the June quarter to help increase their sales - so while prices may be locked - we?re still paying more than we did at the start of the year.

      The business is warning that food inflation could worsen before it gets better, tipping it to moderate in the second half of next year.

      Some relief is on the way though with iceberg lettuce heading back to $3 per head.

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