The price of food is falling in Australia. Coles has followed its adversary Woolworths by handing down a disappointing sales result, though the bad news for shareholders of Coles owner Wesfarmers is good news for consumers.

Food price deflation was 2.4 percent in the second quarter, after a 1.8 percent fall in the first quarter. And despite the gnashing of teeth from the supermarket suppliers, the impending price war in fruit and vegetables is further good news for consumers.

And it is not just food and veg. Average shelf prices fell 2.4 percent (Woolworths reported a drop of 4.1 percent). At some point, Coles will no doubt fatten its margins – already the sharemarket is asking for the next leg in Wesfarmers's game-plan.