Oct 26 (Reuters) - Australian shares fell to a one-year low on Thursday, weighed down by losses in technology and financial stocks, as stronger-than-expected third-quarter inflation data raised bets that the central bank might raise rates next month.
The S&P/ASX 200 index retreated 0.7% to 6,854.20 by 1146 GMT, hitting its lowest level since Oct. 31, 2022.
Data showed on Wednesday the consumer price index (CPI) rose 1.2% in the third quarter, above market forecasts of 1.1% and up from a 0.8% increase the previous quarter.
Futures are now pricing in a 66% chance of a quarter-point hike to 4.35% by the Reserve Bank of Australia at its November policy meeting, compared with 35% before the data.
Market focus has now turned to economic data from the United States including third-quarter gross domestic product numbers due later in the day for further direction.
In Sydney, technology stocks retreated 2.5% to hit their lowest level since May 17.
Interest rate-sensitive financial stocks slid 0.5%, with the so called "big four" banks falling between 0.4% and 0.7%.
Mining stocks edged down 0.1%, with BHP Group and Rio Tinto down between 0.1% and 0.2%.
Bucking the trend, energy stocks jumped 0.6% on strong oil prices.
Among individual stocks, Fortescue fell 1% after the company reported a 3% drop in quarterly iron ore shipment.
Lithium miner Allkem posted a 9.7% jump in first-quarter revenue as higher production from its flagship Mt Cattlin project in Western Australia cancelled out the impact from lower lithium prices. Shares were however down 3.4%.
Coles Group posted a 3.6% jump in first-quarter sales, boosted by higher contribution from its supermarkets section. Shares were down 0.6%.
Meanwhile, Azure Minerals agreed to a takeover offer from Chilean mining giant Sociedad Química y Minera de Chile, in a deal implying an equity value of A$1.63 billion ($1.03 billion) for the lithium producer.
New Zealand's benchmark S&P/NZX 50 index fell 0.6% to 10,820.22.
(Reporting by John Biju in Bengaluru; Editing by Subhranshu Sahu)