Australian shares fell on Thursday's close despite a recovery in Wall Street markets on better-than-expected US consumer price index data.

The S&P/ASX 200 fell 0.5% or 37.1 points to close at 7,749.1.

The US Bureau of Labor Statistics said the consumer price index increased 0.2%, the slowest pace in four months, driven by a drop in prices for cars and gas, Bloomberg reported.

This reprieve may be short-lived, as the escalating trade war is set to push up costs on everything from food to clothing in the months ahead, the report said.

On the domestic front, the total number of seasonally adjusted approved dwellings in Australia grew 6.3% to 16,579 in January, in line with preliminary data, according to final figures released by the Australian Bureau of Statistics.

In company news, Boss Energy (ASX:BOE) agreed to acquire 23.5 million shares in Laramide Resources (ASX:LAM) for CA$0.60 per share, increasing its stake in Laramide to 18.4%, or about 48.1 million shares. Shares of Boss Energy rose 2%, while shares of Laramide Resources jumped 15% at market close.

The Australian Competition and Consumer Commission (ACCC) has raised preliminary concerns over DP World Australia's proposed acquisition of Silk Logistics (ASX:SLH), via a scheme of arrangement, warning that the deal could reduce competition in the container transport sector. Shares of Silk Logistics fell past 22% at market close.

Lastly, Nine Entertainment (ASX:NEC) appointed acting Chief Executive Matthew Stanton as permanent CEO, effective immediately. Shares of the company fell 2% at market close.