Australia's household spending has remained steady in overall terms despite higher fuel costs, supported by income growth and savings buffers, Commonwealth Bank of Australia's weekly card spending data showed on Thursday.

"Consumers appear to be smoothing their spending from savings at this early stage," said Belinda Allen, head of Australian economics at Commonwealth Bank.

CBA's weekly credit and debit card data to March 27 shows a sharp lift in fuel spending, reflecting higher petrol and diesel prices, with transport-related spending rising as a share of total card spend, driven largely by fuel, which accounted for around two-thirds of transport spending last year.

"CBA weekly salary transaction data continues to show decent income growth that is flowing through to CBA bank accounts," Allen added.

There are early signs that higher petrol prices are feeding into inflation expectations as high-frequency market measures, including inflation swaps, a financial instrument designed to hedge against inflation, and breakeven rates, which gauge the difference between normal government bonds and inflation-linked ones, have lifted, the report added.

The bank said that consumer inflation expectations have also moved higher alongside fuel prices.

The bank added that higher interest rates, consumer doubts about the economy, and slower population growth are expected to weigh on housing activity throughout the year as is broader global uncertainty.