I would say grocery store prices are similar, if not a bit less in Melbourne compared to what I pay at home. However, I’m from Newfoundland, an island on the East coast of Canada, so we pay a bit more due to transportation costs. If we were comparing Toronto to Melbourne, I’d imagine prices in Toronto would be a bit less. I believe we also tend to pay more than what you’d pay in the US, especially in California.
I didn’t find prices bad at all though. I imagine prices would be higher the further you get from cities though because of the transportation costs, but it’s hard to say for certain. However, it’s important to remember that even though grocery prices may be a bit higher (depending on the comparison), wages are much higher and more than make up for the difference.