China industrial output grows 9.3 per cent, slowest in three years
In an interview to NDTV Profit, Saumitra Chaudhuri, Member of Planning Commission, said that the rupee’s fall is a combination of various factors like fiscal deficit and weak capital flows. “The RBI is trying to stabilise the rupee,” he added.
Industrial output in China rose by 9.3 per cent in April, the slowest since May 2009, data released on Friday showed. The weak data can be partly attributed to the fact that investment slowed to its lowest level in almost a decade.
Retail sales also slowed to a 14.1 per cent hike, the lowest level in 14 months.
Fixed asset investment also grew at the lowest level since December 2002, at 20.2%.
Annual consumer inflation moderated to 3.4 per cent in April from 3.6 per cent in March, while food prices, which are of most concern for China's people and policymakers, rose by 7 per cent, compared with 7.5 per cent in March.
Easing inflation potentially gives Beijing more scope to loosen policy to help the economy rebound from a first-quarter slowdown in growth.
Asian shares fell to their lowest in nearly four months on Friday, partly on the Chinese data. The Australian dollar, sensitive to expected demand from the biggest market for Australia's commodities, sagged after the industrial production number to its lowest in nearly 5 months.
China's inflation has fallen steadily from a three-year peak of 6.5 per cent in July 2011 in response to a series of policy tightening steps and weakening economic activity.
Pork prices in particular have moderated, after inflation levels of over 50 per cent last summer. Non-food inflation cooled to 1.7 per cent.