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By Sneha Kumar

April 30 (Reuters) - Australian shares rose for a fifth straight session on Wednesday, after data showed that the country's inflation slowed in the first quarter, making a case for a rate cut by the central bank in the coming weeks.

The S&P/ASX 200 benchmark index .AXJO closed 0.7% higher at 8,162.2 points. The benchmark logged a 3.6% rise in April, after two consecutive months of losses.

Data showed core inflation in Australia slowed to a three-year low in the first quarter, taking the annual pace back into the Reserve Bank of Australia's $(RBA)$ 2% to 3% target band for the first time since late 2021.

"With core inflation back in the target band, the case for a May rate cut from the RBA has been cemented," said Tim Waterer, chief market analyst at KCM Trade.

Markets are fully pricing in a 25 basis points cut in the cash rate at RBA's next policy meeting on May 20.

On the bourse, banks .AXFJ led gains with a 1.1% rise, extending their winning streak to 10 sessions. The "Big Four" lenders rose between 0.3% and 1.7%.

Lower interest rates may prompt more demand for loans, which would serve banking stocks well and could offset any loss of interest rate margin stemming from an RBA cut, Waterer said.

Tech stocks .AXIJ and real estate stocks .AXRE rose around 1.6% each during the day.

Miners .AXMM slipped 0.4% on declining iron ore prices with BHP BHP.AX and Rio Tinto RIO.AX ending largely flat while Fortescue FMG.AX declined 1.1%. IRONORE/

Energy stocks .AXEJ and gold stocks .AXGD declined 0.5% and 1.8%, respectively, on lower underlying commodity prices. O/RGOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 1% to 11,903.31 points. The index declined for the fourth straight month, falling 2% in April.

(Reporting by Sneha Kumar in Bengaluru; Editing by Mrigank Dhaniwala)

((Sneha.Kumar@thomsonreuters.com;))