Oct 31 (Reuters) -Australian shares dipped on Thursday on dwindling prospects of a local rate cut this year after a mixed quarterly inflation report, while Mineral Resources surged 16% following a $743 million deal with billionaire Gina Rinehart's Hancock.

The S&P/ASX 200 index .AXJO was down 0.1% at 8,172.6 points, as of 2334 GMT. The benchmark closed 0.8% lower on Wednesday following the release of the inflation report.

In the third quarter, consumer price inflation slowed to its lowest levels in 3-1/2 years, but the core inflation - a key figure for the Reserve Bank of Australia to decide on monetary policy - remained sticky and above forecast.

In its meeting earlier this month, the central bank had considered the possibility of raising or cutting interest rates in the future, but held it steady with the persistently high underlying inflation in the second quarter.

Rate-sensitive banks .AXFJ edged 0.1% lower, but three of the "Big Four" banks rose between 0.1% and 0.3%.

Shares of Mineral Resources MIN.AX climbed 16.4% to a seven-week high and were the top gainers in the benchmark index after the diversified miner announced a sales of permits and joint venture options with mineral explorer Hancock.

Mining stocks .AXMM shed 0.4% despite a climb in iron ore prices. IRONORE/

Giants BHP BHP.AX fell 0.3% and Rio Tinto RIO.AX dropped 0.1%, while Fortescue FMG.AX edged 0.1% higher.

Energy stocks .AXEJ rose 0.3%, with oil prices gaining on drawdown of U.S. stockpiles and a potential output hike from the OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia. O/R

Sector majors Woodside WDS.AX added 0.5% while Santos STO.AX rose 0.6%.

Despite record-high bullion prices, Australian gold stocks .AXGD saw a decline of 0.6%.

Gold miners Northern Star Resources NST.AX fell nearly 1%, while Evolution Mining EVN.AX rose 0.2%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.6% to 12,694.76 points.

($1 = 1.5218 Australian dollars)

Reporting by Sneha Kumar in Bengaluru; Editing by Sherry Jacob-Phillips

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