By 4pm AEST, the benchmark ASX200 index was up 17.2 points, or 0.19 per cent, to 8,952.8, while the broader All Ordinaries had gained 16.1 points, or 0.17 per cent, to 9,223.4.
The ASX200 lost 18 points in the space of a minute after the Australian Bureau of Statistics reported a higher-than-expected jump in consumer prices in July, but had since made up those losses.
The ABS said inflation in the year to July had been 2.8 per cent, up from 1.9 per cent in the year to June.
By the close, seven of the ASX's 11 sectors were higher and four were lower.
The consumer staples sector led the losses, down 4.6 per cent, with a 14.7 per cent plunge by Woolworths contributing as Australia's biggest supermarket chain slashed its dividend after a 17 per cent drop in profit.Â
Coles, which appears to be taking market share from Woolworths, was up 3.9 per cent after posting an 8.5 per cent gain on Tuesday.
Wisetech Global dropped 11.9 per cent after Australia's largest tech company delivered a mixed full-year earnings report, beating expectations on profit but missing on revenue.
The heavyweight mining sector led the gains, up 1.4 per cent, with BHP up 2.5 per cent, Rio Tinto advancing 1.2 per cent and Fortescue down 1.8 per cent.
All of the big four banks were higher, with ANZ leading the charge followed by NAB, Westpac and CBA.
The Australian dollar was trading for 64.89 US cents, from 64.80 US cents at Tuesday's ASX close.
