SYDNEY (Reuters) -Australian consumer inflation held steady in April as higher health and holiday costs offset a drop in petrol prices, although the monthly measure tends to be volatile and left hopes for more interest rates cuts mostly intact.

In the March quarter, the trimmed mean inflation rate dropped to 2.9%, down from 3.3% in the December quarter, and back within the Reserve Bank of Australia's (RBA) target inflation range of 2% and 3%. This also marked the lowest inflation rate in three years.