Economic alert: Annual inflation seen at -0.18 pct on Apr 4 vs from a +0.26 per cent rise the previous week

Annual inflation rate is forecast to have turned negative for the first time in early April due to weak economic activity and last year’s surge in prices

Market expectation fall of -0.18 per cent in the wholesale price index in the 12 months to April 4, down from a +0.26 per cent rise the previous week.

If realised, it would be for the first time India's wholesale price-based inflation rate has been below zero since annual records started in 1977/78 and comes eight months after inflation peaked at 12.91 per cent in early August.

Annual inflation will turn negative even though the WPI index is actually forecast to rise slightly from the previous week, reflecting a sharp jump in the index a year ago when price rises were accelerating.

The data is due around noon (0630 GMT) on Thursday.

The weekly wholesale price index is more closely watched than the monthly consumer price index (CPI) because it includes more products and is published on a more frequent basis.