Supermarket war intensifies as Coles and Woolworths drop prices on popular products

Australia's two biggest supermarkets have both vowed to cut the cost of hundreds of items in their stores as the cost of living continues to soar.

Coles announced today it will reduce the price of 150 of its products by 10-40 percent from Wednesday. The lower prices will be locked in until the end of January next year.

Brands part of the promotion include Steggles, Kleenex, Golden Circle, Kellogg's, Bulla, Pepsi, Masterfoods, Cadbury, Handee and Whiskas, as well as Coles' brand chicken breast and beef scotch fillet steaks.

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In August, Coles promised to "lock" the prices of 1,168 products and said it would start lowering the cost of 500 more. The price drop on 150 products announced today is part of that initiative.

Not to be outdone, rival Woolworths is also offering a similar incentive for shoppers to do their grocery shop with them.  

This Spring, Woolworths started a season-long price drop on "more than 400 grocery staples".

Woolworths claims its initiative will save millions of dollars for customers.

Its price drop will be in place from August 24 to November 29 this year.

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Affected products include some chicken mince, instant coffee, cheese, bread, butter, vitamins, yoghurt, and dips.

Coles Chief Executive of Commercial and Express Leah Weckert said its price drop would help families stretch their budgets further as we head towards the expensive Christmas season.

"We know it's been a really tough year for many of our customers and they are looking for prices they can rely on each time they shop to help their household budget go further," Leah said.

"As we get closer to Christmas, we want our customers to know that they can depend on Coles to bring them reliable value and great prices during the festive season."