Australian shares rose on Thursday's close despite fears that the US Federal Reserve may be cautious to cut rates due to persistent inflation.

The S&P/ASX 200 Index rose 0.5%, or 37.6 points to close at 8444.3 and earlier hit a record high.

US consumer spending rose to 0.4% in October, showing persistent inflation. This, and President-elect Trump's pronouncements of higher tariffs, may lead the US central bank to be wary of future rate cuts, Reuters reported.

On the domestic front, Private new capital expenditure in Australia rose 1.1%, seasonally adjusted, to AU$43.84 billion in the September quarter compared with the prior three-month period, according to data from the Australian Bureau of Statistics.

Australia's total construction work done rose 1.6% to AU$73.34 billion in the September quarter, a leap from a 0.1% uptick in the prior three-month period, the Bureau said.

In corporate news, The Australian Competition and Consumer Commission (ACCC) launched proceedings in the Federal Court against Webjet Group (ASX:WJL) subsidiary Webjet Marketing, citing "false and misleading representations to consumers about flight prices and bookings." Webjet's shares fell 8% on market close.

The Star Entertainment Group (ASX:SGR) reported unaudited earnings before interest, taxes, depreciation, and amortization, (EBITDA) loss of AU$27 million for the first four months of the current fiscal year ending October. The company's shares fell past 6% at market close.

Bega Cheese (ASX:BGA) said it is facing legal proceedings launched by Fonterra Co-Operative Group's (NZE:FCG) Fonterra Brands (Australia) unit and Bonland Cheese Trading in the New South Wales Supreme Court to secure declarations that transactions proposed by the Fonterra Group do not impact the operation of the trademark license agreements between both parties.