The local share market has bounced back from early losses to hit a fresh six-month high on signs inflation is finally peaking.

The benchmark S&P/ASX200 index had been down by as much as 0.4 per cent on Wednesday morning but quickly gained ground after the Australian Bureau of Statistics reported that consumer prices rose less than expected last month.

The index finished up 30.9 points, or 0.43 per cent, to 7284.2, while the broader All Ordinaries gained 38.7 points, or 0.52 per cent, to 7480.7.

For the month the ASX200 rose 420.7 points, or 6.1 per cent, narrowly beating October as the index’s second-best month of the year. It gained 6.4 per cent in March.

The Australian dollar was buying 67.00 US cents, from 66.58 US cents at Tuesday’s ASX close.

Derek Rose
(Australian Associated Press)