Australian shares posted their sharpest fall in three months on Wednesday amid a broad sell-off, as a hotter-than-expected U.S inflation data dashed hopes of the Federal Reserve slowing down on its aggressive interest rate hikes in the coming months.

The S&P/ASX 200 index fell up to 2.8% by 0016 GMT, posting its biggest drop since June 14, after four sessions of consecutive gains.

US consumer price data unexpectedly rose in August amid rising costs for rents and healthcare encouraging Fed to deliver a third 75 basis point rate hike next week to curb inflation, which is over the central bank’s target of 2%.

Miners led the losses, dropping 2.8%, with BHP down 1.7% and Fortescue Metals falling 5.2% in its sharpest decline in more than a week.

Rio Tinto lost nearly 3%, after it announced teaming up with its biggest customer China Baowu Steel Group for developing an iron ore project in Western Australia, amid fraught ties between Australia and China.

Local Energy stocks skid 1.4% on lower oil prices, with oil and gas major Woodside Energy and Santos dropping about 1% and 1.6%, respectively.

Financials dropped up to 2.5% with the ‘Big Four’ banks losing 1.7%-2.7%. Technology stocks tracked their Wall Street peers lower and dropped nearly 4% in their biggest fall since Aug. 29.

Australian shares rise on energy boost; US inflation data in focus

ASX-listed shares of Block Inc fell 5.6%, while Computershare rose 0.4% and was the only stock on the ASX 200 which rose.

Weak bullion prices dragged gold stocks 4.4% lower, making the sub-index the top percentage loser on the benchmark.

Country’s largest gold miner Newcrest Mining slipped 3.5%. In New Zealand, the benchmark S&P/NZX 50 index fell 1.3% to 11,610.05.