The latest consumer price index figures show tea and coffee up by 5.7 per cent, as well as breakfast cereals (2.2 per cent), cakes and biscuits (1.3 per cent) and ice-cream (1.1 per cent), in the three months to December 31.

This is despite the overall price of food and non-alcoholic beverages falling by an average 1.5 per cent in the same period.

Last week Coles introduced ''Super Special'' discounts on a range of green grocery items, slashing prices up to 50 per cent. Last year Coles and Woolworths cut milk and bread prices.

Consumer watchdog Choice said that while the discount campaigns might appear to be a boon for consumers, the cheap fruit and vegetables is a marketing ploy to get customers in the doors. Shoppers needed to scrutinise the prices of other basics.

''They are just loss leaders,'' Choice spokeswoman Ingrid Just said. ''Shoppers are naturally attracted to those prices, but once you are in the store you just don't go for that $1 milk or the cheap bread. You throw other products into your trolley.''

The discount war has renewed calls for an independent watchdog to curb the power of Coles and Woolworths. Choice and the Australian Food and Grocery Council said the federal government must appoint a supermarket ombudsman with the power to fine for anti-competitive behaviour.

The council's chief executive, Kate Carnell, who represents food manufacturers and processors, said producers were frustrated that lack of competition made it hard for suppliers to negotiate reasonable trading terms.

''A very large chunk of the discounted prices are being paid for by pushing price back into the supply chain to the manufacturers and the farmers,'' Ms Carnell said.

Coles' general manager for fresh produce, Greg Davis, rejected claims that the Super Specials campaign was misleading or causing lower returns for farmers.