The Cost of Living Insights Report, published by CommBank iQ, revealed discretionary spending has continued to grow over the first few months of 2023, following an extensive jump in 2022.

The amount being spent on essentials has flat-lined, however, despite the increasing cost of living pressures.

This suggests some Australians are having to plan and decrease their spending altogether to make up for the cost of their bare essentials.

CommBank iQ's Wade Tubman said the report revealed post-COVID excitement was still lingering in the Australian population.

"What we're seeing is a COVID rebound effect; a continued desire even as late as March 2023 for consumers to catch up on the experiences they missed out on during COVID," he said.

The report revealed Australians spent 39 per cent more on travel and accommodation expenses over the previous quarter than during the same period in 2022.

Canberran Emma Wisdom said she was saving and planning for an overseas trip, having been on another already this year. However, she wasn't in a hurry once the world started opening up again.

"I spent the majority of COVID saving up to buy a house. I did my first overseas trip earlier in the year, which was just a short one to the Pacific," she said.

"I was keen on travelling after COVID, I just felt there was still too much uncertainty with outbreaks throughout the course of 2022.

"Having just bought a house, I was really focused on meeting my bills and all the things that I had to do with that. I didn't prioritise travelling but I am looking forward to hopefully doing more of it this year."

IN OTHER NEWS:

Essential spending has increased in almost all categories within the report, except for a 5 percent decline in spending towards petrol which corresponds to a 9.4 per cent increase in spending towards public transport.

Other increases include spending towards supermarkets which was up by 4.5 per cent, insurance costs up by 6 per cent, utilities just up by below 1 per cent, and medical costs up 12.5 per cent.

Ms Wisdom said the majority of her money was going towards necessities like these.

"That includes my mortgage, my bills, my rates, and body corporate fees. Second to that is I've recently turned 30, and a lot of my friends have as well, so I am spending a lot on presents, gifts for weddings and parties.

"Then there's also some money for going out to eating and the money going towards my future travel plans."

Australians are also spending 8.5 per cent more on eating out and delivered food over the past quarter compared to that last year, according to the report.

"I would say my eating out habits haven't changed much over the past few years. I always prepare my own lunches during the week, and I might have one to two meals out a week, too," Ms Wisdom said.

"I do think about my spending insofar as my saving for the future, in this case travel plans. I am trying to plan everything a long way in advance and book a lot of things in advance so it makes less of an impact in one hit close to the time.

"I just really try and spread out all of the big bills and big expenses as much as possible to try and have a lesser impact on my money."