Australian shares were flat with a negative bias on Wednesday following a report showing that the domestic consumer price index slowed to its lowest point in three years.

The S&P/ASX 200 index was little changed to close at 8,126.40.

The Australian Bureau of Statistics said that the domestic consumer price index rose 2.7% in the 12 months to August, its lowest since August 2021, following a 3.5% rise in July.

The index was affected by a fall in fuel and electricity amid government rebates. Prices of automotive fuel dropped 7.6% in August on the year-ago period while electricity prices declined almost 18%, the biggest decline for this group on record.

"Providing the falls in underlying inflation noted today are replicated in the all-important Q3 inflation numbers, it sets up a dovish pivot from the RBA at its meeting on November 5th before a first-rate 25bp rate cut in December," said IG analyst Tony Sycamore, as cited by Reuters.

In a separate report, the Australian Bureau of Statistics said that the seasonally adjusted value of engineering construction work done in Australia rose 1.2% to AU$31.38 billion in the June quarter compared with the prior three-month period.

Further, the government statistics agency said that expenditures by international students in Australia accounted for AU$50.49 billion of the country's exports in the financial year 2023 to 2024.

These expenses, such as tuition fees and accommodation, were included in the education-related category of Australia's travel services exports.

In corporate news, Sigma Healthcare (ASX:SIG) shares hit a new 52-week high after reporting earnings per share of AU$0.002 for the half-year ended July 31, compared with the prior-year period's AU$0.011, and sales revenue growth of 9.4% to AU$1.8 billion. It also said that the Australian Competition and Consumer Commission is expected to release its decision related to the company's proposed acquisition of Chemist Warehouse by Oct. 24.

Firebrick Pharma (ASX:FRE) intends to get its Nasodine nasal spray approved in all markets over the long term to receive royalties and license fees through its partners, according to an investor update. Its shares rose 6% at market close.

Australia's Takeovers Panel declined to conduct proceedings on Energy Resources of Australia's (ASX:ERA) AU$880 million entitlement offer and about an application from shareholders Zentree Investments and Packer & Co. Shares of the uranium producer decreased 17% at market close.