June 29 (Reuters) - Australian shares rose on Thursday as inflation easing to a 13-month low boosted banking stocks, with investors awaiting retail sales data but U.S. Federal Reserve chair Jerome Powell hinting at more interest rate hikes kept gains in check.

The S&P/ASX 200 index rose 0.3% to 7,219.1 by 0030 GMT. The benchmark finished 1.1% higher in the previous session.

Powell reiterated on Wednesday that more rate hikes likely lied ahead for the central bank, and did not rule out a boost in the cost of borrowing at a policy meeting scheduled for July end.

Back home in Australia, consumer inflation slowed to a 13-month low in May, driven by a sharp pullback in fuel, while a measure of core inflation also cooled in a sign interest rates might not have to rise again in July.

Financials gained 0.9% amid a high cash rate environment. All of the 'big four' banks added gains to the benchmark with major lender ANZ Group rising as much as 1.3%.

Investors are now awaiting the country's retail sales data, expected at 0130 GMT.

Energy companies rallied 0.4% as oil prices jumped 3% overnight. Oil and gas majors Woodside Energy and Santos added 0.5% and 0.4%, respectively.

Information technology stocks also tracked their overseas peers to gain 1.6%. IT majors Xero and Megaport were up 1.4% and 0.3%, respectively.

Miners dragged 0.6% post weak industrial data from the world's second-largest economy China.

Iron-ore behemoths BHP Group, Rio Tinto and Fortescue Metals fell 0.2%, 0.5% and 0.5%, respectively.

Gold stocks limited gains on the benchmark, falling 0.7%. Bullion prices hit a four-month low overnight.

Sector majors Newcrest Mining and Northern Star Resources fell 0.6% each.

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index was trading flat at 11,729.1.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi Aich)