An increase of nearly 10 per cent in health insurance premiums was the main driver of the cost of living rise in April.

According to figure released by the Department of Statistics, the annual rate of inflation jumped to 1.8 per cent — the highest rate recorded so far this year and up from 1.2 per cent in March.

The basket of goods and services on which the Consumer Price Index is based cost $126, compared to $100 in April 2006.

In the health and personal care sector, prices rose 8.5 per cent year over year, mainly as a result of a 9.8 per cent increase in health insurance premiums.

Fuel and power continued to keep the lid on inflation, with prices down 7.5 per cent from April 2014. The decrease was the result of a hefty fall in the fuel adjustment charge on electricity bills, thanks to the slump in global oil prices.

Food items cost 2.9 per cent more than a year before. In April a 2.4 per cent increase in the cost of pasta was offset by a 2.4 per cent fall in the cost of fresh and frozen chicken.