Australia's share market has handed back an early lead to end the session lower, after hotter-than-expected inflation figures raised the odds of incoming interest rate hikes.
The S&P/ASX200 fell 36.8 points on Wednesday, down 0.4 per cent, to 9,127.8, as the broader All Ordinaries lost 36.1 points, or 0.39 per cent, to 9,338.8.
The top-200 had surged to within 76 points of its all-time high in early trade, but retreated after July inflation figures overshot forecasts.
Sticky price growth has raised the odds of further Reserve Bank interest rate hikes, with markets pricing a one-in-three chance of a September increase, and a 78 per cent likelihood by November.
Trimmed mean inflation was proving stickier than the RBA had hoped, IG market analyst Tony Sycamore said.
"A hawkish repricing like the one seen today is quite literally kryptonite to an interest-rate sensitive index like the ASX200," he said.
A recovery in bank shares was put on hold as the big four reversed course, while easing oil prices dragged energy stocks lower as Iran and Oman discussed a plan to reopen the Strait of Hormuz.
Consumer staples was the best-performing sector, up 1.8 per cent with help from a surging Woolworths' share price after a bumper $1.1 billion full-year profit.
The resources segment held up well despite the souring sentiment, trading roughly flat as copper hovered near record highs.
Gold producers were mixed as the precious metal eased from its recent rally to $US4,630 ($A6,450) an ounce, while iron ore futures crept higher to $US96 a tonne.
IT stocks were under major selling pressure, as segment heavyweights WiseTech and Xero tumbled more than 10 and five per cent respectively.
WiseTech's fall came as the logistics software group posted record full-year revenue, but its shrinking profit missed analysts' forecasts.
Also in earnings, Nine Entertainment soared on the back of a $142.4 million bottom-line profit, up seven per cent on a year earlier as its digital expansion continued.
The media group also struck an advertising services partnership with online services marketplace Airtasker, which improved after posting a 15.5 per cent lift in annual revenue.
Domino's Pizza shares tumbled more than six per cent, tracking with a similar fall in network sales over the 2025/26 financial year.
Flight Centre also slumped after taking a hit from travel disruptions caused by the Middle East conflict, but noted a "solid rebound" in the current quarter.
As the biggest fortnight in reporting season winds down, Qantas, Wesfarmers and Star Entertainment will hand down results on Thursday, followed by Virgin Australia, Harvey Norman, and Australia Post on Friday.
The Australian dollar is buying 71.79 US cents, up from 71.45 US cents on Tuesday at 5pm after lifting on the prospect of higher interest rates.
ON THE ASX:
* The S&P/ASX200 fell 36.8 points, or 0.4 per cent, to 9,127.8
* The broader All Ordinaries lost 36.1 points, or 0.39 per cent, to 9,338.8
One Australian dollar trades for:
* 71.79 US cents, from 71.79 US cents at 5pm AEST on Tuesday
* 114.18 Japanese yen, from 113.89 Japanese yen
* 61.53 euro cents, from 61.31 euro cents
* 52.65 British pence, from 52.42 pence
* 120.72 NZ cents, from 120.01 NZ cents
