* Mining, energy stocks weigh as commodity prices fall
* Australia Q4 underlying inflation subdued, RBA seen accommodative
* Focus turns towards U.S. Fed meeting due later in the day (Updates to close)
By Harish Sridharan
Jan 27 (Reuters) - Australian shares closed lower on Wednesday, dragged lower by losses in the resources sector, while a record-low underlying inflation in the last quarter signalled a possible retention of the accommodative policy stance by the country's central bank.
The S&P/ASX 200 index .AXJO closed 0.7% lower at 6,780.6, pulling back from a 11-month high scaled on Monday. Markets were closed on Tuesday for a local holiday.
Data showed underlying inflation in Australia stayed at 1.2% in the December quarter, which analysts took as a green light for the Reserve Bank of Australia (RBA) to keep policy super easy. inflation is still far from target and to eventually get it there, the unemployment rate will need to be considerably lower and wage growth much higher," analysts at ANZ wrote, adding that the figure suggested the RBA would continue with a very accommodative policy stance.
"As such, we look for the RBA to extend its quantitative easing program with an announcement possible as early as next week when the Board meets."
The U.S. Federal Reserve's policy meeting is expected to wrap up later in the day which will be keenly watched by investors, with analysts expecting the Fed to stick to its dovish tone to help speed economic recovery. .AXMM shed 3.4% after Chinese iron ore prices fell.
Fortescue Metals FMG.AX slumped 6.4% to see its worst session in more than four months, while global miners Rio Tinto (LON:RIO) RIO.AX and BHP BHP.AX recorded significant losses.
Gold stocks .AXGD also took a hit on a fall in bullion prices, with Newcrest Mining NCM.AX losing 1%.
Energy stocks closed lower. Woodside Petroleum Ltd WPL.AX and Santos Ltd STO.AX dropped 2.9% and 4.3%, respectively.
New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.4% higher to settle at 13,374. A2 Milk ATM.NZ was the top gainer in the index.