At lunchtime AEST on Wednesday, the benchmark S&P/ASX200 index was up 21.2 points, or 0.28 per cent, at 7,704.7, while the broader All Ordinaries was up 19 points, or 0.24 per cent, at 7,956.9.
The ASX200 had been up as much as 0.5 per cent in mid-morning trading but then plunged 30 points in the space of five minutes after the inflation readout, before recovering somewhat.
The Australian Bureau of Statistics reported that consumer prices rose 1.0 per cent in the March quarter, compared to consensus expectations for a 0.8 per cent rise.
Annual inflation was 3.6 per cent, down from 4.1 per cent in the year to December, but hotter than the 3.5 per cent rate expected.
"I do not expect these figures to place the RBA into a hawkish position, but it does push back on hopes of any cuts this year," wrote City Index analyst Matt Simpson in an analysis.
The Australian dollar jumped above US 65 US cents for the first time in 12 days following the readout, indicating that traders were likewise giving lower odds to rate cuts this year.
Eight of the ASX's 11 sectors were higher at midday, with materials, industrials and utilities lower.
Financials were the biggest movers, rising 0.8 per cent as all of the big retail banks gained ground.
Westpac was up 1.1 per cent, NAB had climbed 0.9 per cent, CBA had added 0.7 per cent and ANZ was up by 0.5 per cent.
In the mining sector, goldminers were bouncing back somewhat after Tuesday's selloff. Northern Star was up 1.1 per cent, Newmont had added 1.5 per cent and Evolution was up 1.7 per cent as the yellow metal changed hands at $US2,319 an ounce.
Elsewhere in the sector, BHP was down 0.5 per cent, Rio Tinto had dropped 0.7 per cent and Fortescue was flat after announcing that iron ore shipments for 2023/24 would be at the lower range of guidance because of a ore care derailment on December 30 and weather disruptions.
In industrials, Cleanaway had plunged 11 per cent to $2.68, giving up most of Tuesday's gains, after denying a media report was in talks with Seven Group Holdings about a possible takeover offer. Seven Group also denied the report.
In the consumer discretionary sector, Kogan.com had plummeted 26.2 per cent to a three-month low of $5.19 after the e-retailer announced that its revenue fell 2.4 per cent to $105.9 million in the third quarter, compared to expectations for low single-digit growth.
Kogan said the drop was caused by a focus on platform sales as it reduces inventories and positions itself as a more capital-light business.
In the energy sector, Woodside was up 0.1 per cent at $28.46 as the energy giant held its annual general meeting in Perth.
The Australian dollar was buying 65.22 US cents, from 64.53 US cents at Tuesday's ASX close.
