Inflation falls from peak, but still more than twice the top of the Reserve Bank's target for interest rates

The cost of living has continued to rise much faster than the Reserve Bank's 2-3 per cent target. (ABC News: Sharon Gordon)

Australia's inflation rate has fallen from its December peak, with annual price increases of 7 per cent for the year to March, down from 7.8 per cent.

Prices rose 1.4 per cent over the March quarter, which was marginally above average economist forecasts, but the smallest quarterly rise in more than a year, according to the Australian Bureau of Statistics (ABS).