(Updates with more details) May 2 (Reuters) - Australia's top...

(Updates with more details)

May 2 (Reuters) - Australia's top supermarket chain Woolworths Group Ltd (WOW) on Tuesday posted an 8% rise in third-quarter sales as it continued to benefit from higher prices for its goods, aided by persistent domestic food inflation.

While the cost-of-living pressures across Australia remained elevated, demand for groceries and essential items was robust with supermarkets passing on the rising costs from suppliers to shoppers.

"Availability scores in our food businesses are improving as supply chains slowly recover, but customers are concerned about the impact of ongoing inflation on household budgets," said Chief Executive Officer Brad Banducci.

Banducci had warned earlier that while food inflation was tapering down, prices were taking longer than expected to retreat off pandemic highs.

The Sydney-based grocer's total group sales came in at A$16.34 billion ($10.83 billion) for the March quarter, up from A$15.12 billion a year ago, beating a Jefferies estimate of A$16.14 billion.

Last week, the company's smaller rival Coles Group (COL) reported a 7% jump in its supermarket sales at A$8.6 billion.

($1 = 1.5083 Australian dollars)