CHINA'S inflation may rebound in April and other economic indicators are likely to improve slightly from the lows a month earlier, analysts predicted ahead of the data release later this week.

The Consumer Price Index, the main gauge of inflation, may rise 2.5 percent in April, Industrial Bank's Chief Economist Lu Zhengwei said. His projection was higher than the market average of 2.2 percent.

In March, China's inflation eased to 2.1 percent from February's 10-month high of 3.2 percent, leaving more space for the country to adjust policies.

But so far China has not moved to unveil new macroeconomic policies to stimulate the economy, Lu said.

Li Maoyu, an analyst at Changjiang Securities Co, said China's economic data may surprise the market on the upside because "April is a month which traditionally reports positive growth rate."

But data released last week showed that China's manufacturing sector and service activities both weakened in April.

The Purchasing Managers' Index, the gauge of operating conditions in the manufacturing sector, fell to 50.6 last month from March's 50.9. The non-manufacturing PMI, which measures the service sector, also lost 1.1 points from a month earlier to 54.5 in April, both pointing at slower expansion.

Tang Jianwei, an economist at the Bank of Communications, said economic uncertainties have emerged, especially after the breakout of bird flu disease and the earthquake in Sichuan Province.

According to Xinhua news agency, the bird flu outbreak has caused a daily loss of no less than 1 billion yuan (US$161.3 million) nationwide.