Australia's consumer watchdog accused the country's two largest supermarket chains of misleading shoppers about discounts on hundreds of products in lawsuits filed on Monday, tightening pressure on the sector amid a cost-of-living crisis.

Australia's consumer watchdog is suing the country's two biggest supermarket chains, alleging they falsely claimed to have permanently dropped the prices of hundreds of items.

In separate lawsuits, the Australian Competition and Consumer Commission said Woolworths and Coles held prices steady on certain products for up to two years, then hiked them only to advertise them as