INFLATION stayed unchanged last month as higher water bills and banking fees offset lower vegetable prices.

The Consumer Prices Index (CPI) remained at its March level of 1.9 per cent in April, according to data from the Office of National Statistics (ONS).

After four consecutive monthly increases, fresh vegetable prices fell due to improved supplies of some products, the ONS said.

But the cost of household services such as water and sewerage rose by more than a year ago, while there were also hikes in the cost of banking services compared to the same period last year.

The figures mean CPI inflation - the Government's preferred measure - remained just below Chancellor Gordon Brown's two per cent target.