ZURICH, May 5(Reuters) - Swiss annual inflation eased more than expected in April amid retreating fuel costs, data showed on Friday, still overshooting the central bank's goal but narrowing the gap with its target range.

Consumer prices increased last month by 2.6% year on year, down from 2.9% in March, marking the 14th month in succession that price increases have exceeded the Swiss National Bank's (SNB) target range between 0% and 2%.

Analysts polled by Reuters had forecast on average annual inflation to dip to 2.8%.

Prices were steady month on month as falling costs of heating oil offset price increases for air transportation and package holidays, as well as clothing and footwear, the Federal Statistics Office said.

Annual core inflation, which strips out volatile items like fuel and food, was 2.2%, unchanged from March.

Costs of petroleum products fell 12.1% year-on-year, reflecting the base effect of sharp price increases in the wake of Russia's invasion of Ukraine in February 2022.

While much lower than in many other countries, many of which have seen double-digit price growth, Swiss headline inflation has remained above the central bank's target range since February 2022.

In response, the SNB has hiked interest rates at four consecutive policy meetings, bringing its benchmark to 1.5% in March.

Prior to Friday's data and following recent policymakers' comments suggesting they were not done yet, many analysts were expecting the central bank to hike rates by at least one more time when it meets next on June 22. (Reporting by Tomasz Janowski; Editing by Sonali Paul)