The headline CPI rate dropped from 3.3 per cent in March to 2.8 per cent, more than most analysts had expected.

Most economists think the rate of Consumer Price Index (CPI) inflation slowed to 3% in April, from 3.3% in March.

Economists polled by Reuters had expected the inflation rate to drop back to 3%, cooling from 3.3% in March.

The main upwards pressure on inflation last month was a sharp rise in the cost of fuel.