Australia's headline inflation rate fell sharper than expected in April, but a rise in the underlying measure will be cause for concern at the Reserve Bank.
A decline in petrol prices as a result of the government's fuel excise cut caused the increase in the annual consumer price index to fall to 4.2 per cent, from 4.6 per cent in March, the Australian Bureau of Statistics reported on Wednesday.
Forecasters had been expecting the headline inflation rate to fall to 4.4 per cent.
