News: COL UPDATE 1-Australia's Coles Q3 sales jumps on easing supply chain, higher prices

(Adds further details on results, background)

April 28 (Reuters) - Australia's Coles Group (COL) posted a 6.5% rise in quarterly sales revenue on Friday as the supermarket chain benefited from improved supply chain and higher food prices as well as a moderate rise in consumer spending.

Australia's inflation has spiralled in recent months, which has benefitted supermarket earnings. Despite household budgets shrinking to cope with higher mortgage payments, spending on essentials such as groceries have remained resilient.

The company, which operates more than 800 supermarkets in Australia, said group sales revenue was A$9.67 billion ($6.41 billion) in the March quarter, compared with A$9.08 billion a year ago.

"Pleasingly we saw some modest improvement in supply chain availability however there is still more to do," said Coles CEO Steven Cain, who is due to retire at the end of the month.

The company's supermarket business, which accounts for most of the group's earnings, posted third-quarter sales revenue of A$8.60 billion compared with A$8.03 billion a year earlier.

($1 = 1.5094 Australian dollars)