The S&P/ASX200 fell 85.7 points on Wednesday, down 0.95 per cent, to 8,926.8, as the broader All Ordinaries lost 77.1 points, or 0.83 per cent, to 9,218.7.
The market tumbled from an already shaky start after higher-than-expected September quarter inflation figures landed at the upper limit of the Reserve Bank's preferred trimmed mean price growth measure.
“This result will be a genuine concern for the RBA,” said Belinda Allen, Head of Australian Economics at CBA. “We expect the central bank to take a more hawkish tone to avoid a return to higher inflation.”
Interest rate-sensitive sectors led the losses, as the heavyweight financial sector tumbled 1.9 per cent, tracking with losses in the major banks.
