Inflation in the euro zone eased slightly last month, but the Republic retains the dubious honour of having the highest rate of the 12 members. The annualised rate for the 12 months to April fell by 0.1 of a percentage point to 2.4 per cent and remains well above the European Central Bank's target of 2 per cent.

The April figure is higher than expected and will add to pressure for a rise in European interest rates. Most observers anticipate the next move in rates will be upwards.

The European Commission pointed to a number of once-off factors contributing to the higher than expected rate, although they insisted the introduction of euro notes and coins on January 1st had only a slight impact on prices.

A rounding effect and high prices in Spain were identified as the main culprits. Irish inflation - as measured by Eurostat - was 5 per cent down slightly from 5.1 per cent in March.