The local share market was on track for its biggest fall in two weeks as investors smashed retailers with further signs demand is softening. At noon AEST on Monday, the benchmark S&P/ASX200 index was down 48.3 points, or 0.

62 per cent, to 7,747.7, while the broader All Ordinaries had fallen 50.1 points, or 0.

62 per cent, to 7,989.8. Consumer discretionary stocks led the market down, slipping 2.

1 per cent. It came as analysts predicted inflation data to be released later in the week will show price growth accelerated again over the year to May. Journalism for the curious Australian across politics, business, culture and opinion.

While Wednesday's Australian Bureau of Statistics consumer price index is expected to show inflation slowed 0.2 per cent from April to May, the annual rate should rise from 3.6 per cent to 3.

8 per cent, said JP Morgan analysts Ben Jarman, Tom Kennedy and Jack Stinson. But the Reserve Bank should be able to see positive notes if they look through the noise. "May's significant negative seasonality should prosaically help to trim perceptions of sticky inflation to some extent, with drags likely in the recreation and culture group (particularly holiday travel/accommodation), as well as clothing/footwear, and household furnishings," said Mr Jarman et al.

Their forecast was echoed by ANZ Research's Brian Martin and Daniel Hynes. They said markets had been taking negative economic data as a positive sign, speeding central banks towards cut rates, but too much.