May 1 (Reuters) - Australian shares slipped on Thursday, snapping a five-day rally as mining stocks weighed on the benchmark, while consumer staples gained led by the country's top grocer Woolworths, which posted better-than-expected third-quarter sales.

The S&P/ASX 200 index .AXJO inched 0.1% lower to 8,116.10 points by 0040 GMT. The benchmark rose 0.7% on Wednesday.

On the local bourse, miners .AXMM weighed most on the benchmark, dipping 1.6% as iron ore futures struggled amid the possibility of steel output cuts in top consumer China. IRONORE/

The world's largest listed miner BHP Group BHP.AX was down 2.2%, while Rio Tinto RIO.AX fell 1.7%.

Conversely, Australian consumer staples .AXSJ gained 0.7% led by a 1.6% rise in the country's largest supermarket chain Woolworths WOW.AX, after it posted better-than-expected third-quarter sales as price cuts drove higher volumes in its core grocery business.

Energy stocks .AXEJ fell over 1%, as oil prices settled lower in the context of a global trade war that has eroded the outlook for fuel demand. O/R

Sector major Woodside Energy WDS.AX traded 2.1% lower, followed by a 0.8% fall in smaller rival Santos STO.AX.

Gold stocks .AXGD declined as well, slipping 0.5% as bullion prices fell. GOL/

Financial stocks .AXFJ were down 0.3%, snapping a 10-day winning streak. The "Big Four" lenders were down between 0.1% and 0.6%.

In Australia, data on Wednesday showed local core inflation slowed to a three-year low in the first quarter, strengthening the case for a rate cut by the central bank in the coming weeks.

The Reserve Bank of Australia $(RBA)$ is set to meet for its two-day monetary policy meeting on May 19.

As of April 30, 56% of market participants expect the RBA to cut its cash rate to 3.60% from the current 4.10% level, according to RBA Rate Tracker. 0#AUDIRPR

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% to 11,966.32 points.

(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Alan Barona)

((Adwitiya.Srivastava@thomsonreuters.com))

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