According to the latest figures released by the ABS, while non-discretionary spending increased by 13.9 percent, the growth of discretionary goods and services slowed to 2.2 percent.
"Hotels, cafes, and restaurants" and "Transport" were the main contributors to the overall rise.
Spending on goods rose 4.8 percent, boosted by a 12.6 percent increase in food, while spending on services saw an 11.4 percent rise.
"Rising prices are contributing to this growth. The March quarter Consumer Price Index showed services price inflation rose 6.1 percent - its largest rise since 2001 - and goods price inflation rose 7.6 percent," said Robert Ewing, ABS head of business indicators.
All states and territories registered a jump in household spending, among which the Australian Capital Territory saw the biggest increase in household expenditure at 12.6 percent.
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