Higher petrol and food prices have pushed Australia's annual inflation rate above 4% for the second consecutive month, putting it well above the Reserve Bank of Australia's target, a survey shows. Inflation in the year to March posted consecutive rises at 4% or above for the first time since the TD Securities-Melbourne Institute monthly gauge began in August 2003. This put annual inflation well above the RBA's longstanding 2%-3% target, but economists still expect interest rates to stay on hold in April. Headline inflation climbed by 0.4% in March to post an annual reading of 4%, the same as the previous month, the gauge showed. The gauge's underlying inflation reading, based on the RBA's equivalent trimmed mean measure, was up by 0.6% in March and 3.8% over the year. Dearer petrol, fruit and vegetables, rent and financial services costs were the biggest contributors to the March inflation gauge numbers. The monthly rises were offset by cheaper furniture, audio-visual equipment, computers and telecommunications. Petrol prices were up by 12.4% in the year to March, while rent soared by 12% in the period. TD Securities senior strategist Joshua Williamson said the RBA was worried about Australia's inflationary problems. ''The RBA will remain concerned with the run of inflation results confirming inflation above its target and showing few if any signs of topping out,'' he said. But Mr Williamson said the RBA was likely to leave rates on hold in April as the global credit crunch pushed borrowing costs up and rate rises in February and March slowed down consumer spending. La Trobe University economics Professor Don Harding, a co-creator of the inflation gauge, said March quarter consumer price index (CPI) data was likely to show annual inflationary growth of 4.2%. ''Because of the way that the Australian Bureau of Statistics collects prices, we expect the bulk of the strong increase in prices observed in March will not show up in ABS CPI inflation until the June quarter, which seems likely to also show strong inflation,'' he said. RBA governor Glenn Stevens told a private Treasury seminar in March that first-quarter CPI data, due out on April 23, was likely to show an annual inflation reading of 4%. All 19 economists surveyed by AAP last week said the RBA would leave rates on hold when it holds its monthly board meeting tomorrow. AAP