The price war among major Australian supermarkets may have brought down grocery costs, but many families still struggle in stretching their food budget, the big chunk of which being eaten up by other household bills.

The main culprit, according to the survey conducted by The Daily Telegraph on more than 1,000 online participants, are soaring utility bills, which in the future could force significant number of families to forego many essential food on the table.

The Daily Telegraph survey showed that as many as 60 percent of Australian families spent between $100 and $250 for their grocery needs in the past 12 months, with some 80 percent indicating that their ability to allocate more money for food has been reduced in the past year.

The Salvation Army has reported that in New South Wales, thousands of families sought assistance for problems stemming on their financial difficulties, with many of them left to slash their basic spending like food, clothing, and health if only to meet bills obligations such as water and electricity.

It did not help that Coles and other major retailers have been offering discounts on products sitting on their shelves as up to 60 percent of those queried in the online survey declared that they don't have food security at all.

That means no immediate cash available to purchase food products even if prices have gone down considerably as better harvests push down the levels, according to Salvation Army coordinator Tony Devlin.

"We're seeing a lot of people with incredibly brutal budgets ... and other things are fixed and unfortunately for a lot of people these are the only things they have any sort of control over," Devlin was quoted by News.com.au as saying on its Monday report.

In a news release issued by Coles, most consumers have reported spending $40 more on their weekly trip to the supermarkets while some 10 percent professed that their grocery expenditures have ballooned to $100 more over the past 12 months.

As a form of commitment to its patrons, Coles spokesman Jon Church said that the retail giant has "invested in lowering prices on the things customers buy most - milk, bread, meat, pasta and more."

Also, some 75 percent respondents of the Daily Telegraph online survey have admitted that due to the pressing demands of other household bills, they have shifted into bargain-hunting mode, opting to generic products that effectively extend their purchasing power.

On its part, Coles has pledged to sustain is so-called consumer friendly pricing scheme well into the holiday season.

"We will continue to bring prices down to help Australian families enjoy a great Christmas without worrying about the cost," Church said.