Australian shares edge higher, head for worst month in six; inflation data in focus

Business Recorder reported that Australian shares edged up on Wednesday, with the S&P/ASX 200 index gaining 0.1% to 8,718.1 points early in the session. Investors held back ahead of domestic inflation figures due later that day, and the index was still on course for its weakest month since March.

Higher oil prices and rising bond yields have revived fears that inflation could stay high for longer. August consumer prices are forecast to climb to 4.1% from 3.5%, largely because fuel costs jumped, while core inflation is seen steady at 3.6%, far above the Reserve Bank of Australia's 2% to 3% target range. The central bank set its cash rate at a 15-year high on Tuesday, though swap pricing points to no further increases this year.

Gold mining shares advanced by up to 3.2%, reaching a one-week peak after bullion recovered from a seven-week low, with Northern Star Resources adding 8.4%. Droneshield jumped as much as 11.5% to A$1.80, a one-month high, after its US unit won a Domestic Shield contract from the US Department of War with a ceiling value of $500 million.