Beginning Wednesday, May 29, Australian supermarket giant Woolworths is cutting the price by up to 33 per cent for hundreds of grocery items as it renews its price war with competitor Coles.

With the hefty price cuts, which will be in place for at least six months, Woolies Managing Director Tjeerd Jegen estimates the promo would save Australian consumers about $400 a year.

In response to the price war, Coles said it has gone ahead and reduces prices of hundreds of items at cheaper prices under the supermarket's Down Down price campaign that begun three years ago.

Among the items that will have reduced prices in Woolies are rump steak down 29 per cent to $13.50 a kilo, Kellogg's Corn Flakes 725G packs down 24 per cent to $4 and International Roast coffee 500 g tin down 33 per cent to $11.

Woolies insisted their prices are lower than Coles which seems to be winning the supermarket price war by taking away shoppers from Woolies through their dollar-per-loaf bread and $2 for two litres of house-brand milk which Woolsworth matched.

While the price war of the two supermarket giants are benefitting Australian consumers with lower prices, suppliers are complaining they are carrying the brunt of the heavy discounts offered as the two supermarket giants seek lower wholesale prices under the threat of dropping the itmes or replacing them with house brands that now comprise one-fourth of total supermarket sales.

"It's our job to make life easier for our customers, every day, by making sure they are saving on the essential items that they buy most often," Mr Jegen said in a statement.

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