Australia's total spending rose 1.1% in August due to higher essential costs rather than heightened demand, according to NAB's Consumer Spend Trend released on Tuesday.

Total spending climbed 8.7% over the year, while monthly growth was 0.6%, excluding fuel.

The report pointed to increasing pressure on households, with the end of the temporary fuel excise discount, combined with higher fuel prices, NAB Head of Australian Economics Gareth Spence said.

Non-discretionary spending was up 2.2% in August, driven by a 12% jump in fuel and a 3.2% rise in utilities and telecoms.

Meanwhile, discretionary spending was still growing, but momentum had slowed, Spence said.

Discretionary spending rose 0.4%, with household goods broadly flat and personal goods down 0.2%.