End-of-day summary:
Aussie shares sank to a three-week low after an unexpected rise in inflation appeared to squash any chance of interest rate cuts this year.
The ASX 200 skidded 101 points or 1.3% to 7666, its weakest close since May 3. All 11 sectors declined, led by industrials, consumer staples and financials.
An already-soft session took a turn for the worse following mid-morning news that annual inflation accelerated in April for a second straight month, rising from 3.5% to 3.6%. Economists had been forecasting a decline to 3.4%.
Judo Bank economist Warren Hogan said the report could force the Reserve Bank's hand at next month's meeting.
"These results will test the RBA's patience," he said. "This number could tip them over to raising rates at their next meeting on 18 June," he added.
Today's Australian sell-off may have been exacerbated by declining US futures. By the Australian close, S&P 500 futures were down 0.46%.
