According to National Statistics Institute (INE) predictions, inflation will have fallen five decimal points to 4.2% by the end of this month compared to March though the official IPCA inflation rate for April will not be definitively confirmed until May 13th.

The news comes just hours after president Zapatero predicted during a TV interview last night that "prices will start falling bit by bit."

While encouraging, the rate is significantly higher (+1.7%) than twelve months ago, when inflation stood at just 2.5%.

Rising fuel and food prices are mainly responsible for seven consecutive months of rising inflation.