Shares' rally fades as hot price growth dampens mood

Eight of 11 ASX sectors finished the day higher despite a jump in headline inflation. (Bianca De Marchi/AAP PHOTOS)

An early surge in Australian shares has faded by the close after a hotter-than-expected inflation print weighed on the outlook for borrowing costs.

The S&P/ASX200 eased from an almost 100-point rally to close 69.5 points higher on Wednesday, up 0.81 per cent to 8,606.5, as the broader All Ordinaries gained 75.1 points, or 0.85 per cent, to 8,899.3.