There is a simple macroeconomic effect of the food price discounting from the big supermarkets – inflation will be lower.  See the story here  http://tiny.cc/ia2e5

If the discounting or bias to lower price increases is a structural change reflecting productivity or the onset of healthy competition, interest rates will also be biased a bit lower.

What is also important is that the purchasing power of consumers will be higher.  Cost of living pressures will subside.  In a period where Australia has seen a decade straight of real wage increases, massive income tax cuts and pension rises, consumers are doing very well thank you – a trend that is only going to be enhanced with lower food prices and a bias to lower interest rates.

I can’t see what’s wrong with it other than for the few price gougers who are being found out by the supermarkets.