Benchmark down for third straight session Technology, financials...

• Benchmark down for third straight session
• Technology, financials emerge as top drags
• Gains in miners, energy stocks limit losses

(Updates to close)

Australian shares fell on Wednesday, dragged down by technology and banking stocks as red-hot inflation data raised fears that interest rates could rise from record lows as soon as next week.

Consumer prices surged at the fastest annual pace in two decades, raising speculation of a possible 0.25% rate hike next week, though many still favour a June increase given such a sudden move would cause political ripples so near to the election on May 21.

"The Australian economy is in a good position to contend with higher rates and we see little short-term impact on the housing market or consumption habits," said Kerry Craig, global market strategist at J.P. Morgan.

The S&P/ASX 200 index (xjo) ended 0.8% lower at 7,261.2, extending falls to a third session and hitting its lowest level in nearly six weeks.

Technology stocks .AXIJ led the fall, shedding 2.4% after Wall Street's sharp declines overnight. ASX-listed shares of Block Inc (SQ2) slid 5.9% while Xero Ltd (XRO) dropped 1.8%.

Financials .AXFJ lost 1.6%, hitting the lowest since March 16, with all of the so-called "Big Four" banks closing in negative territory.

The country's top lender, Commonwealth Bank of Australia (CBA) , said Chair Catherine Livingstone would retire in August after more than five years in the role.

Cutting losses, the miners and mining sub-index .AXMM gained 0.3% after a four-day slide, helped by higher iron ore prices after China's president vowed to boost domestic demand.

Sector giants BHP Group (BHP) , Rio Tinto (RIO) and Fortescue Metals Group (FMG) gained between 0.2% and 1.7%.

Energy stocks rose close to 1% as oil prices gained after Russia cut gas supplies to Bulgaria and Poland, while hopes of Chinese economic stimulus buoyed the demand outlook.

Sector majors Santos Ltd (STO) and Woodside Petroleum Ltd (WPL) climbed about a percent each, respectively.

New Zealand's benchmark S&P/NZX 50 index (nz50) ended 0.7% lower at 11,726.39.

($1 = 1.3930 Australian dollars)