Nov 28 (Reuters) - Australian shares rose close to a record high on Thursday, led by banking stocks, a day after data showed the country's consumer price inflation rate stayed at a three-year low in October.

The S&P/ASX 200 index .AXJO rose 0.5% to 8,445.1, as of 2350 GMT, just 17 points shy of an all-time high it reached earlier this week. The benchmark gained 0.6% on Wednesday.

Rate-sensitive financials .AXFJ rose 0.8%, with the "Big Four" banks gaining between 0.3% and 1.1%.

Data on Wednesday showed that Australia's consumer price inflation held at an annual pace of 2.1%, under forecasts of 2.3%, though core inflation picked up in a sign of lingering cost pressures.

Among other sectors, miners .AXMM advanced 0.3%, after iron ore futures prices strengthened for a third straight session in the previous session, boosted by firmer steel output in China. IRONORE/

BHP Group BHP.AX and Fortescue FMG.AX rose 0.8% and 0.7%, respectively.

Energy stocks .AXEJ gained 0.5%, as oil prices held steady overnight. O/R

Healthcare stocks .AXHJ and technology stocks .AXIJ also rose 1% and 0.7%, respectively.

Among individual stocks, Insurance Australia Group IAG.AX jumped as much as 5.6% to become one of the top gainers on the benchmark index, after the general insurer said it would buy the insurance underwriting business of RACQ in a deal valued at A$855 million ($555.32 million).

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 1.2% to 12,058.64, a day after the country's central bank cut rates for a third time in four months and flagged more substantial easing.

Fisher & Paykel Healthcare FPH.NZ dropped as much as 5.3% and was one of the top losers on the benchmark, after the medical equipment maker's first-half net profit missed market expectations.

($1 = 1.5396 Australian dollars)

(Reporting by Himanshi Akhand in Bengaluru; Editing by Rashmi Aich)

((Himanshi.Akhand@thomsonreuters.com))

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